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U.S. Bank, FIA Swaps Memo, Powell on Banks: Compliance

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U.S. Bank NA agreed to pay $18 million to end a federal regulator’s lawsuit over its handling of funds belonging to clients of Peregrine Financial Group Inc., an Iowa futures trading firm that collapsed in a $200 million fraud that sent its founder to prison after a suicide attempt.

The accord, announced Wednesday by the federal Commodity Futures Trading Commission, resolves a lawsuit it filed against the US Bancorp unit in 2013. The agency said the lender failed to abide by account-segregation rules, enabling firm founder and Chief Executive Officer Russell Wasendorf Sr. to use clients’ money to pay for a private plane, a restaurant he owned and his divorce settlement.