Bill on Bankruptcy: Madoff Victims Rooting for Stanford Victory

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Nov. 14 (Bloomberg) -- How the U.S. Supreme Court rules in a case involving the R. Allen Stanford Ponzi scheme may decide whether those defrauded by Bernard Madoff recover in full, as Bloomberg Law's Lee Pacchia and Bloomberg News bankruptcy columnist Bill Rochelle discuss on their new video.

When federal District Judge Victor Marrero ruled that former MF Global Holdings Ltd. Chief Executive Jon Corzine can't use the Delaware business See more +

Nov. 14 (Bloomberg) -- How the U.S. Supreme Court rules in a case involving the R. Allen Stanford Ponzi scheme may decide whether those defrauded by Bernard Madoff recover in full, as Bloomberg Law's Lee Pacchia and Bloomberg News bankruptcy columnist Bill Rochelle discuss on their new video.

When federal District Judge Victor Marrero ruled that former MF Global Holdings Ltd. Chief Executive Jon Corzine can't use the Delaware business judgment rule to insulate himself from liability for $1.6 billion in missing customer funds, Marrero said such a "massive train wreck" means "at minimum someone did something wrong." Marrero wouldn't buy into the idea that "what transpired at MF Global" is the "governing industry standard for doing business."

The video closes by discussing how Delaware has a lock on the large Chapter 11 business, even recently to the exclusion of New York. For bankruptcy professionals outside Delaware, the future isn't any brighter, in view of statistics looking backwards and forwards. See less -

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Topics:  Bernie Madoff, Business Judgment Rule, Chapter 11, Commercial Bankruptcy, Fraud, MF Global, Ponzi Scheme

Published In: Bankruptcy Updates, Constitutional Law Updates, Finance & Banking Updates, Mergers & Acquisitions Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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