Investors had argued that the bank and its top brass should have known that it lacked the controls necessary to prevent the $17.7 billion sale, as that issue spun out of the bank’s well-known loss of filing privileges with the U.S. Securities and Exchange Commission. But U.S. District Judge Lewis Liman was skeptical that executives who knew of the lost privileges would have known the bank lacked the controls to cope.
Investors had argued that the bank and its top brass should have known that it lacked the controls necessary to prevent the $17.7 billion sale, as that issue spun out of the bank’s well-known loss of filing privileges with the U.S. Securities and Exchange Commission. But U.S. District Judge Lewis Liman was skeptical that executives who knew of the lost privileges would have known the bank lacked the controls to cope.
