Friday, 29 July 2011

¶ We are sorry to learn that Judge Jed Rakoff has ruled that Irving Picard, the trustee who is trying to recoup the losses of Bernard Madoff’s victims, lacks standing to sue banks and other service providers for negligent enablement. Technically — and standing is always technical when it isn’t blindingly obvious — the trustee stands in Mr Madoff’s shoes, not those of his victims. This Gilded Age reasoning makes no human sense, and bankruptcy law ought to be revised forthwith to refute it.