Panobinostat in Treating Patients With Relapsed or Refractory Acute Lymphoblastic Leukemia or Acute Myeloid Leukemia

DISEASE CHARACTERISTICS: * Histologically or cytologically confirmed acute myeloid leukemia or acute lymphoblastic leukemia (ALL) * Relapsed or refractory disease * Patients with Philadelphia chromosome-positive (Ph+) ALL refractory to BCR/ABL inhibitors are eligible * Patients who have relapsed after prior autologous or allogenic stem cell transplant are eligible * No active CNS disease PATIENT CHARACTERISTICS: * ECOG performance status 0-2 * Serum albumin ≥ 3 g/dL * AST and ALT ≤ 2.5 times upper limit of normal (ULN) (5.0 times ULN if transaminase elevation is due to leukemic involvement) * Bilirubin ≤ 1.5 times ULN * Creatinine ≤ 1.5 times ULN or creatinine clearance ≥ 50 mL/min * Potassium ≥ lower limit of normal (LLN) * Phosphorous ≥ LLN * Serum total calcium (corrected for serum albumin) or serum ionized calcium ≥ LLN * Magnesium ≥ LLN * Thyroid stimulating hormone and free T4 normal (thyroid hormone replacement therapy allowed) * LVEF ≥ LLN by MUGA or ECHO * No impaired cardiac function, including any of the following: * QTc \> 450 msec * Congenital long QT syndrome * History of sustained ventricular tachycardia * History of ventricular fibrillation or torsades de pointes * Bradycardia (i.e., heart rate \< 50 beats per minute) * Pacemaker allowed provided heart rate ≥ 50 beats per minute * Myocardial infarction or unstable angina within the past 6 months * New York Heart Association class III-IV congestive heart failure * Right bundle branch block and left anterior hemiblock (bifascicular block) * No uncontrolled hypertension * No unresolved diarrhea \> CTCAE grade 1 * No impaired gastrointestinal (GI) function or GI disease that may significantly alter the absorption of oral panobinostat * Not pregnant or nursing * Negative pregnancy test * Fertile patients must use effective double-barrier contraception during and for 3 months after completion of study treatment * No other primary malignancy within the past 5 years, other than curatively treated carcinoma in situ of the cervix or basal cell or squamous cell carcinoma of the skin * No HIV or hepatitis C positivity * No other concurrent severe and/or uncontrolled medical condition * No significant history of non-compliance to medical regimens or inability to give reliable informed consent PRIOR CONCURRENT THERAPY: * See Disease Characteristics * Recovered from all prior therapy * More than 3 weeks since prior chemotherapy (6 weeks for nitrosoureas or mitomycin C) or radiotherapy * More than 4 weeks since prior valproic acid * No other prior treatment with a histone deacetylase inhibitor * No concurrent medication that may cause QTc prolongation or induce torsades de pointes * No concurrent CYP3A4 inhibitors * No concurrent grapefruit, grapefruit juice, or Seville (sour) oranges * No concurrent radiotherapy * No other concurrent anticancer therapy or investigational therapy