CFTC sues US Bancorp's U.S. Bank N.A. over Peregrine funds

WASHINGTON, June 5 Wed Jun 5, 2013 11:34am EDT

WASHINGTON, June 5 (Reuters) - The Commodity Futures Trading sued U.S. Bancorp's U.S. Bank N.A., accusing it of unlawfully holding customer funds from Peregrine Financial Group, the futures brokerage that collapsed in July 2012.

The CFTC complaint alleges that U.S. Bank N.A. used Peregrine's customers' funds as security on loans and improperly held customers' funds in an account that it treated as Peregrine's commercial checking account.