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Re: Large Green post# 333598

Wednesday, 09/07/2011 5:27:29 PM

Wednesday, September 07, 2011 5:27:29 PM

Post# of 730232
Actually, IT is not quite out of her jurisdiction as she has - from what I've read - a variety of remedies at her disposal to penalize a member of the creds committee who engages in IT. She cannot put them in jail, and she cannot require the disgorgement of the IT profits, but she has some pretty potent equitable remedies that she can engage. The best of which is equitable disallowance of their claim entire; but I doubt she will go that far, but I do believe equitable disallowance or equitable subordination of some significant part of their claims is very possible.

BTW, this type of conduct by hedge funds who take over and dominate creds committtees and then continue to trade has been getting increasing attention lately. This is why, I believe, she jumped on Nate's IT allegations, which were based solely on pretty circumstantial evidence, rather than saying "Oh, Pshaw."
I think she was waiting for someone to raise this issue.


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