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March 22, 2004 at 07:00 PM
NU Online News Service, March 22, 2004, 5:48 p.m. EST – State insurance commissioners are suing Bear Stearns & Company Inc., New York, in connection with the collapse of insurers once owned by Martin Frankel.[@@]
Bear Stearns was not immediately available for comment.
The commissioners, who are seeking more than $200 million in damages, are alleging that Bear Stearns had a duty of reasonable care, including a duty to “know its customer” and “not allow transactions that were not of the sort in which the particular customer would normally be expected to engage or that were contrary to the stated investment purposes of the customer.”
