The Securities Investor Protection Corp. said that bankruptcy judges can rule on claims for fraudulent transfers by the liquidator of Bernard Madoff's brokerage, exercising powers that are not affected by the U.S. Supreme Court's ruling in Stern v. Marshall, Bloomberg News reported on Friday. SIPC was responding to U.S. District Judge Jed S. Rakoff, who has received hundreds of requests by defendants to remove their cases from bankruptcy court. If needed, bankruptcy judges may ready cases for trial, and then send them to district court, SIPC said in Friday's court filing.
