Interesting discussion about the implications of possible “clawback” moves by a bankruptcy trustee. I believe the U.S. Federal courts allowed the IRS to be included in the “clawback” targets in the aftermath of the Madoff scandal, so a lot of Madoff’s victims are actually going to get tax refunds from the IRS.
A few people predicted that the treatment of GM bond holders signaled the end of contract law in the financial markets and they were ignored.
Now here it is.