JPMorgan, UBS AG win dismissal in Madoff case

Reuters

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U.S. District Court Judge Colleen McMahon in New York sided with another judge's opinion earlier this year in trustee Irving Picard's common law claims against HSBC Holdings PLC and several affiliates for lack of standing.

"I am persuaded as well," McMahon wrote in an opinion dated October 31 and released on Tuesday. She sent what remains of the cases back to U.S. Bankruptcy Court for further proceedings.

Banks have taken the offensive after U.S. District Judge Jed Rakoff in Manhattan, in a case against HSBC Holdings Plc and others in July said Picard exceeded his power in suing third parties on behalf of former customers of Bernard L. Madoff Investment Securities LLC.

The cases are Irving H. Picard v. JPMorgan Chase & Co and Picard v. UBS AG in U.S. District Court for the Southern District of New York, No. 11-913 and No. 11-4212.

(Reporting by Grant McCool; Editing by Tim Dobbyn)

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