Who Would Have Guessed Bank Catering To Accused Money Launderers Might Get Caught Up In A Ponzi Scheme?

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Still got Signature's back.

When you’re offering to let customers physically punch you, you might be a bit too client friendly, and this can have both positive and negative consequences. On the plus side, you might build a $33 billion bank from scratch in a decade and a half, win over Barney Frank and earn the undying loyalty of hip-hop moguls battling money-laundering charges. On the other side, this:

All of its success — partly a result of its mantra to deliver top-notch service to its small and midsize business clientele — could not shield it from a Ponzi scheme that lost $66 million of investor money and sent a money manager to federal prison for three and a half years for securities fraud….

The cozy relationship Signature had with the money manager and his now-bankrupt investment firm helped advance the scheme, according to the lawsuit.

Signature Bank Sued Over Connection to Ponzi Scheme [DealBook]

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