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The Wall Street Journal reported a federal bankruptcy judge in Florida has granted approval to a lawsuit alleging GE Capital knew that one of its clients, Thomas Petters, was operating a Ponzi scheme.
According to the Wall Street Journal Law Blog, the lawsuit alleges that GE Capital uncovered the scheme in 2000, but kept it quiet in order to insure a $50 million loan was repaid.
To read the full Wall Street Jounal report, click here. (subscription required).