Not sure if the following cases offer precedents. Obviously, the Federal Govt enjoys additional legal powers, but these cases offer the circumstances where a pa

Not sure if the following cases offer precedents. Obviously, the Federal Govt enjoys additional legal powers, but these cases offer the circumstances where a party sued their derivatives trader (the opposite of the questions you raise). Procter & Gamble v. Bankers Trust [1] P&G sued BT for losses incurred in derivatives contracts that should not have been sold by BT. This article [2] provides some more detail: > In another high-profile case, Procter & Gamble Co. is suing Bankers Trust, its derivatives dealer, blaming it for a loss of dollars 195 million on two interest-rate contracts the company claims it should not have been sold. > Procter & Gamble recently upped the stakes dramatically, claiming triple damages under U.S. civil racketeering legislation. In a related development, a shareholder has sued Procter & Gamble for financial irresponsibility. The outcome of the case is that Bankers Trust settled with P&G as per this article [3]. The same article [2] also mentions the Orange County bankruptcy where OC sued its derivatives broker. At the time, this was one of the largest financial failures. > Orange County is suing both its main derivatives broker, Merrill Lynch, and the accounting firm Peat Marwick Merrill Lynch paid OC $437 M to settle as per this article [4]. [1]: https://casetext.com/case/procter-gamble-v-bankers-trust/case-details https://casetext.com/case/procter-gamble-v-bankers-trust/cas... [2]: https://www.nytimes.com/1996/01/13/your-money/IHT-moneylosers-demand-a-day-in-court.html https://www.nytimes.com/1996/01/13/your-money/IHT-moneyloser... [3]: https://www.nytimes.com/1996/05/10/business/bankers-trust-settles-suit-with-p-g.html https://www.nytimes.com/1996/05/10/business/bankers-trust-se... [4]: https://www.nytimes.com/1998/06/03/business/ending-suit-merrill-lynch-to-pay-california-county-400-million.html https://www.nytimes.com/1998/06/03/business/ending-suit-merr...