Louis Brandeis

“ We have no occasion to decide whether a stranger would be liable as for a preference, if, without suggestion from any officer or employee of the bank, he withdrew his deposit because of rumor or suspicion of insolvency. It is true that ordinarily a payment made by a bank to a depositor in the usual course of business is not recoverable, even though the bank was then clearly insolvent. ”

“ One of the objects of the national bank system is to secure, in the event of insolvency, a just and equal distribution of the assets of national banks among unsecured creditors, and to prevent such banks from creating preference in contemplation of their failure. ”

“ The Circuit Court of Appeals stated that it affirmed the action of the trial court dismissing the counterclaim on the ground that no fraud had been practiced by the bank on the company and that 'it was not an innocent depositor by reason of the acts of its president.' The receiver gives additional reasons in support of that action. We have no occasion to enter far into the inquiry. Throughout the litigation the company has insisted that the bank was still solvent on June 12 when the check in question was drawn, and on June 13 when it was paid. ”