JPMorgan Will Not Face Madoff Liqiudator Lawsuit and 2 More Heavily Traded Stocks to Follow

JPMorgan Chase & Co. (NYSE:JPM): Current price $52.48

On Thursday, the United States Court of Appeals in New York decided that JPMorgan and HSBC Holdings can not be sued by the Bernard Madoff firm’s liquidator for $30 billion, because he is tainted by the latter’s fraud. Madoff trustee Irving Picard appealed rulings disallowing him from demanding damages from banks that allegedly ignored Madoff’s fraud so as to collect fees. Previously, Federal district judges Colleen McMahon and Jed Rakoff, both in Manhattan, had ruled that Picard can not accuse the banks of fraud since he is the trustee for a fraudulent enterprise, citing the legal principal in pari delicto. The Court of Appeals in New York agreed, commenting that Picard’s “scattershot responses” had “missed the mark.”

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