Rakoff Reverses Himself in Madoff Case
Feb. 13 (Bloomberg) -- Judges rarely reverse themselves. When U.S. District Jed Rakoff recanted a ruling he made previously in the liquidation of Bernard L. Madoff Investment Securities Inc., the reversal was important because it allows the Madoff trustee to knock out billions of dollars in claims, as Bloomberg Law's Lee Pacchia and Bloomberg News bankruptcy columnist Bill Rochelle discuss on their new video. Rochelle explains why financial advisers Capstone Advisory Group LLC and Robert Manzo agreed to give up almost $4 million in fees they would have earned from GSC Group Inc. Rochelle also makes a proposal to prevent Residential Capital LLC from emulating Washington Mutual Inc. and Tribune Co. from becoming another marathon Chapter 11 reorganization chewing up hundreds of millions of dollars in professional fees. The video ends with discussion of the bond market and an important decision about municipal bankruptcies.