In the case of Bank of America v. Whitney Central National Bank, 1922, the U.S. Supreme Court was asked to determine whether a bank could be held liable for accepting deposits from an insolvent depositor who had no intention or ability to repay its debts. The plaintiff, Whitney Central National Bank, argued that it should have been informed by the defendant (Bank of America) about their customer's insolvency before they accepted and transferred funds on behalf of this customer. The court ruled in favor of the defendant (Bank Of America), stating that there is no legal obligation for a bank to investigate or disclose information regarding a depositor’s financial status unless there are clear signs indicating fraudulent activities which were not present in this situation. Therefore, banks cannot be held responsible if they unknowingly accept deposits from insolvent depositors without any intent to defraud other creditors. This ruling established important precedents concerning banking law and clarified responsibilities between banks during transactions involving potentially insolvent customers.

In the dissenting opinion for Bank of America v. Whitney Central National Bank, it was argued that the majority's decision failed to properly consider and apply principles of equity. The dissent took issue with the majority's interpretation of Louisiana law, arguing that it did not adequately protect creditors' rights in cases where a debtor had transferred property with intent to defraud creditors. It was further contended that under both Louisiana law and general equitable principles, such fraudulent transfers should be deemed null and void as against existing creditors at the time of transfer. Therefore, according to this view, Whitney Central National Bank should have been able to recover from assets fraudulently transferred by its debtor even though those assets were now held by another bank (Bank of America). This perspective emphasized fairness towards innocent third-party creditors who might otherwise suffer losses due to debtors' fraudulent actions.