(7th Cir. Jan. 8, 2016)
The Seventh Circuit reverses the district court’s decision that the bank defendant did not have inquiry notice when it loaned funds to a cash management entity that was able to provide collateral far in excess of the value of its own assets—it was pledging the cash of its customers. The court affirms the district court’s decision that the bank’s behavior did not rise to the level of warranting equitable subordination of its claim. Opinion below.
Author: Matt Lindblom