U.S. Bank slapped with suit over $30M in investment losses

Woodmen of the World wants U.S. Bank to pay nearly $30 million for investing some of the insurer's assets in risky mortgage-backed securities that plummeted in value instead of the conservative investments the bank promised. Omaha-based Woodmen filed a federal lawsuit against the Minneapolis bank on Thursday. Woodmen said it had lost $29.7 million because of how U.S. Bank invested cash Woodmen received as part of a stock-lending program. Woodmen says it agreed to lend stock it owned to traders through a U.S. Bank program that promised the cash collateral Woodmen received for the stock would be placed in conservative, high-quality investments. U.S. Bank spokesman Steve Dale says the bank believes it acted responsibly and will vigorously defend itself.