UPDATE 3-US Bancorp sued over ‘Midwest Madoff’ brokerage accounts

U.S. regulators on Wednesday launched the first lawsuit against a bank tied to the blow-up of brokerage Peregrine Financial, alleging U.S. Bancorp knowingly let Russell Wasendorf Sr. use customer money held at the bank to fund his lavish lifestyle. Peregrine founder Wasendorf, who has been dubbed ‘the Midwest Madoff’ for his near two-decade long scheme, began serving a 50-year sentence in February for bilking $215 million from customers.
More on Reuters here.