Banks Aren't Cops, Peregrine Judge Told

Law360, New York (February 06, 2013, 1:29 PM ET) -- JPMorgan Chase Bank NA and U.S. Bank NA on Tuesday asked an Illinois federal judge to toss a putative consolidated class action claiming they failed to catch the $100 million Peregrine Financial Group Inc. fraud, saying they had no duty to police customer activity.

In separate briefs, the banks told U.S. District Judge Sharon Johnson Coleman that they cannot be held liable for account activities of their former depositor PFG and its now-imprisoned CEO Russell Wasendorf, who embezzled at least $100 million in investor funds and...
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