Bankers Trust New York Corp. committed no fraud in its derivatives operations, but failed to properly control its traders, according to an eagerly awaited report released late Monday.

The report blamed former chief executive officer and chairman Charles S. Sanford and former president Eugene B. Shanks for a loose management structure that left the bank open to lawsuits by Procter & Gamble Co. and Gibson Greetings Co. among other derivatives clients.

The bank agreed to the outside review of its over-the-counter derivatives operation in a December 1994 cease-and-desist order with U.S. regulators.

In April 1995 the bank selected former U.S. Attorney General Benjamin Civiletti and former New York State Banking Commissioner Derrick Cephas to conduct the review.

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