Feds accuse US Bank of mishandling funds
Federal regulators have accused US Bank of mishandling funds from a failed brokerage firm.
The Commodity Futures Trading Commission has sued the bank, charging it failed to safeguard the funds of customers of Peregrine Financial Group.
The Iowa-based futures brokerage collapsed last July. The former CEO is serving a 50-year sentence for bilking customers out of $215 million.
US Bank spokesman Tom Joyce said Peregrine's CEO withheld documents from the bank and falsified others. Joyce said the lawsuit is without merit and represents an attempt to shift blame to the bank.
"Like the CFTC, we certainly are sympathetic to the victims. It's important to remember that US Bank was also a victim of the same fraud, one that unfortunately the CFTC, which was Peregrine's regulator, failed to detect," Joyce said.
The CFTC is seeking restitution for people who suffered losses because of the US Bank's alleged actions.
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