On October 18th, the Seventh Circuit affirmed in part and vacated in part a trial court's entry of summary judgment in favor of a bank that sued petitioners, former senior executives of Comdisco, Inc., who participated in their employer's shared investment plan. The executives had borrowed money from the bank in order to purchase the SIP stock posting no collateral, and in at least one instance, stating no income, to support the loans. After the employer went bankrupt, the bank sought repayment. The Court held that petitioners lacked standing to assert affirmative defenses under Federal Reserve Board Regulations G and U because the Securities Exchange Act does not create a private right of action for violations of margin loan regulations. However, petitioners should be allowed to assert affirmative defenses based on illegality under Section 10(b) of the Exchange Act and Section 17(a) of the Securities Act; and set-off for fraud, set-off for negligent misrepresentation, and excuse of nonperformance. Costello v. Grundon.