Mealey's Banking & Finance - Panel: Bank Had No Duty To Inquire Whether Adviser Had Authority To Open Account

Mealey's Banking & Finance - Panel: Bank Had No Duty To Inquire Whether Adviser Had Authority To Open Account

ST. LOUIS - The Eighth Circuit U.S. Court of Appeals on Aug. 13 held that a bank had no duty to investigate whether an insured investment company gave an adviser authority to open a doing/business/as bank account, affirming a lower court's ruling dismissing an insurer's lawsuit stemming from a settlement with the insured's defrauded customers (National Union Fire Insurance Company of Pittsburgh, PA v. Yvonne Raczkowski, et al., No. 13-2184, 8th Cir.; 2014 U.S. App. LEXIS 15505).

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