The U.S. Supreme Court ruled Wednesday that lying on a loan application is illegal, even if the false statements had no bearing on a bank's decision to extend credit.

Justice David Souter, writing for an eight-to-one majority, said the federal bank fraud law does not require the false statement to be material.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.