First National Bank of Louisville v. Loretta Lustig, Aetna Casualty and Surety Co., and Federal Insurance Co.

DeMOSS, Circuit Judge:

We are again faced with questions surrounding the First National Bank of Louisville’s suit against Aetna Casualty and Surety Company and Federal Insurance Company (the “Sureties”) to recover under a Banker’s Blanket Bond for damages arising out of the dishonest or fraudulent activities of a former bank loan officer. On our first visit, we (1) reversed the district court’s summary judgment order because we found that genuine issues of material fact existed as to whether the bank officer intended to injure the bank and benefit himself so as to trigger liability for the…