Rochelle on Capmark, MF Global, Blixseth, Magistrates: Audio
Why Goldman Sachs Group Inc. (GS) would prefer being in bankruptcy court as opposed to federal district court is a mystery Bloomberg News bankruptcy columnist Bill Rochelle unravels on the podcast with Bloomberg Law's Lee Pacchia. Short shrift, according to Rochelle, is what a customer received from the bankruptcy judge when he proposed making family law applicable to the liquidation of commodities broker MF Global Inc. Timothy Blixseth, former owner of the bankrupt Yellowstone Mountain Club LLC, had a $375 million lawsuit tossed out of court thanks to a U.S. Supreme Court decision from 130 years ago. The podcast ends with discussion of two important circuit court rulings. One, from the U.S. 5th Circuit in New Orleans, casts a long shadow on magistrate judges and whether they have constitutional power to execute some of the duties they traditionally have undertaken. The second case has a judge on the 9th Circuit in San Francisco beseeching her brother and sister judges to line up with other courts of appeal regarding bankruptcy appeals entitled to hearing in circuit courts.
Running time 12:56