Texas lawmakers are considering a bill that would protect banks from losses when their customers fall prey to scams.

The legislation was introduced after six Texas banks were ordered to compensate dozens of senior citizens fleeced by a financial planner who had used their bank certificates of deposit as collateral for his personal loans. The bill, which has passed a Senate committee, would let a financial institution keep funds derived from criminal activities if it could prove that it had no knowledge of the crime and did not ignore obvious improprieties.

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