Case: Bank May Be Liable for Conversion for Cashing Check without Endorsement

Topic: Negotiable Instruments and Credit

Schmitz sued Firestar bank and Putnam mutual funds for conversion after one of Putnam's advisors deposited two checksmade out to Schmitz into the account of Georgetown Financialwithout his knowledge. Putnam mutual funds have limited powers of attorney, who gave Putnam no authority to deposit or accept any checks that were not signed by the client and are specific to who they give those powers to. The banks liability was determined at trial even if the bank only "actedin good faith or in accordance with reasonable commercial standards" and that is under 403 of the UCC.

is the bank liable in this case why? and why not?