Gerald Alexis (GA) has come to your bank, the First National Bank of (YourJurisdiction) Limited, in order to encash a cheque for US $20,000. However, GA does not have an account at that bank. GA wishes to collect and depart with all of the cash. However, the bank's policy is that US Dollar cheques in excess of $10,000 must be deposited. For this reason, the bank advises GA to (1) open a bank account, chequing,and deposit US$4000 into it and (2) to place the remaining US$16,000 into their Mutual Funds investment scheme, which has been invested into BRIC (Brazil, Russia, India and China). Eight months later, GA visits the bank for an update on his money and investments because he has not been receiving statements in the mail and the staff of the bank have refused to give him any information over the telephone. The bank informs him and he is devastated to learn that the money in his chequing account has been reduced to US$3,616 (due to the monthly maintenance fee of US$24 and very little simple interest returns) and the money in his Mutual Fund account has dwindled to just over US$13,000, largely to the current unrest in Russia. GA is furious and disappointed. Please advise him about any potential liability of the bank.

Gerald Alexis (GA) has come to your bank, the First National Bank of (YourJurisdiction) Limited, in order to encash a cheque for US $20,000. However, GA does not have an account at that bank. GA wishes to collect and depart with all of the cash. However, the bank's policy is that US Dollar cheques in excess of $10,000 must be deposited. For this reason, the bank advises GA to (1) open a bank account, chequing,and deposit US$4000 into it and (2) to place the remaining US$16,000 into their Mutual Funds investment scheme, which has been invested into BRIC (Brazil, Russia, India and China). Eight months later, GA visits the bank for an update on his money and investments because he has not been receiving statements in the mail and the staff of the bank have refused to give him any information over the telephone. The bank informs him and he is devastated to learn that the money in his chequing account has been reduced to US$3,616 (due to the monthly maintenance fee of US$24 and very little simple interest returns) and the money in his Mutual Fund account has dwindled to just over US$13,000, largely to the current unrest in Russia. GA is furious and disappointed. Please advise him about any potential liability of the bank.