For starters, about $48 billion - the difference between $64.8 billion (total of all investors' final account balances) and $17.3 billion (total net principal losses of investors, per Picard).  Of course, investors are unlikely to get back even $17.3 billion, unless Madoff trustee Irving Picard can string together a number of favorable court rulings - principally on cases against 3rd-party defendants like JPMorgan Chase.  Tuesday's ruling was a good start, as ...

Embattled Madoff trustee Irving Picard's life just got a "shot in the arm." A federal appeals court ruled that the trustee's approach to calculating investor losses is "legally sound" and fair.  The trustee's formula limits investor claims solely to the cash lost in the scheme, not to fictional profits investors believed had accumulated in their accounts during the years-long Ponzi scheme.

It's a big win for Picard as it affirms a crucial aspect in his handling of the case. Considering the magnitude of the affair, it also should stand as a set of guidelines in the handling of similar disputes in the future.

Speed Up Payouts.   The ruling may also hasten payments for claims by eligible victims.  Although Picard has already collected a $10bn pool of assets, there has yet to be any restitution outside of a token 4% payment approved by the court earlier this summer.

In spite of Tuesday's court ruling, Picard still faces legal battles on several fronts.  First, are his attempts to recover damages from 3rd parties who dealt with Madoff investors or provided services to the Madoff pooled investment fund.  Second, he faces challenges in his attempts to collect from investors whom he considers “willfully blind” to evidence of fraud.  Finally, he has to defend his refusal to honor claims from those who invested indirectly through investment partnerships and other feeder funds.  [NYTimes, 8/16/11]