U.S. Bank, N.A. agreed to pay US $18 million to the court-appointed trustee for Peregrine Financial Group to resolve the enforcement proceeding brought against it by the Commodity Futures Trading Commission related to the bank’s alleged role in the demise of PFG—a futures commission merchant—in 2012. The CFTC brought the legal action in June 2013, claiming that the bank facilitated at least some of the misappropriation of PFG’s customer funds by Russell Wasendorf, Sr., the firm’s principal, that led to PFG’s bankruptcy and loss of more than US $215 million of customer funds. The CFTC claimed that US Bank knowingly facilitated at least some of the principal’s wrongdoing when it permitted Mr. Wasendorf to transfer funds out of a PFG customer account to pay for his private jet, restaurant and divorce settlement, among other things, thereby treating the PFG customer account as a personal commercial checking account. The CFTC also claimed that US Bank acted unlawfully when it accepted PFG’s customer account as security on personal loans to Mr. Wasendorf, his wife and his construction company. In settling this matter, the CFTC acknowledged “that U.S. Bank has already taken significant remedial action to strengthen the internal controls and policies” regarding its handling of customer accounts for its FCM clients.