Warner Bros. chairman Bob Daly yesterday expressed dismay over the decision by Chicago Judge Richard A. Posner not to remove himself from the financial interest and syndication rules case.

Daly, who co-chairs Hollywood’s fin-syn coalition, also labeled as “ridiculous” the handling of the fin-syn case by Chicago’s U.S. 7th Circuit Court of Appeals.

“After all the studies, after all the witnesses, after the FCC has meeting after meeting on the subject, now for the rules to have been thrown out by three judges–one of whom once worked for CBS– there’s clearly something wrong with that,” said Daly in a telephone interview.

Posner penned the 3-0 opinion tossing out Federal Communications Commission revisions to the fin-syn rules last year. The judge has come under fire from the pro-fin-syn contingent, however, for not initially disclosing that he once worked for CBS in a fin-syn-related proceeding, and for not recusing himself from the case once his work for the Eye web became public.

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