Enron Judge's Decision Triggers Alarm
The Bond Market Association, the International Swaps & Derivatives Association, the Loan Syndications & Trading Association, and the Securities Industry Association have already filed court papers criticizing the judge's ruling. Merrill Lynch & Co., Citibank and Barclays Bank PLC joined a growing list of objectors.
The ruling, by U.S. Bankruptcy Judge Arthur Gonzalez, held that holders of claims against a bankrupt company could see those claims wiped out even if they did nothing wrong in their relationship with the company. Under the ruling, holders of bankruptcy claims could be at risk if they merely bought a claim from another creditor who may have engaged in "inequitable conduct."
http://www.chron.com/disp/story.mpl/ap/fn/4124562.html
This is not good news for the investment firms...
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