U.S. District Judge Linda Reade ordered U.S. Bank to pay $18 million to the trustee for Peregrine Financial Group as reimbursement to customers of the bankrupt company, says the CFTC. The money would go to customers who traded on domestic futures exchanges. By the start of this year, 44 percent of funds that disappeared with the collapse of Peregrine in July 2012 had been recouped. Some $215 million of customer funds was allegedly misappropriated by the company. Peregrine was the second major failure of a trading house in a year.
The CFTC, which brought a complaint against the bank, said U.S. Bank failed to act responsibly in handling an account intended to hold funds for Peregrine’s clients.