Deutsche Bank has been sued by two hedge funds for allegedly reneging on a deal to buy their claims against the Madoff estate.  Kingate Global Fund and Kingate Euro Fund say they have $1.6bn (£674mn) in claims against the estate of Bernie Madoff, which they allegedly sold to Deutsche Bank in August for $1bn. The legal action provides a window into the secondary market in Madoff claims that has developed over the last year.  Madoff victims are the sellers, and speculators are the buyers.  Buyers and sellers of the claims, alike, have closely watched the efforts of Madoff trustee Irving Picard, as he attempts to recover money for Madoff investors. The Kingate complaint charges that Deutsche is seeking to renege on the deal because it fears Mr. Picard will not be able to recovery as much money as hoped.  Deutsche Bank said that it "will purchase Kingate's claims if both parties can finalise mutually acceptable documentation."   [The Telegraph,12/22/11]