$20B in Madoff Claims Thrown Out

    NEW YORK - JANUARY 5:  Bernard Madoff (C) walks out from Federal Court after a bail hearing in Manhattan January 5, 2009 in New York City. Madoff is accused of running a $50 billion Ponzi scheme through his investment company. Madoff is free on bail and hasn’t formally responded to the charges or entered a plea.  (Photo by Hiroko Masuike/Getty Images) *** Local Caption *** Bernard Madoff

    Hiroko Masuike / Getty Images

    A judge threw out $20 billion in lawsuits against banks accused of helping Bernie Madoff in his Ponzi scheme. The ruling is the latest in a series of losses for Irving Picard, the court-appointed trustee who has tried to go after financial institutions—particularly J.P. Morgan Chase and UBS—that backed Madoff and overlooked warning signs of fraud. The judge ruled that Picard couldn’t recover a lump sum of the $100 billion in lawsuits he’s seeking because as a trustee he represents Madoff’s bankrupt firm, not his clients who are owed the money. Picard has thus far helped recover roughly $11 billion of money lost in the scheme, and has said he will appeal the ruling.

    Read it at Wall Street Journal