Loss Borne by Proximate Source of Negligence

For allowing payment100 on the checks to a wrongful and fictitious payee, BPI -- the drawee bank -- becomes liable to
its depositor-drawer. Since the encashing bank is one of its branches, 101 BPI can easily go after it and hold it liable for
reimbursement.102 It "may not debit the drawers account103 and is not entitled to indemnification from the
drawer."104 In both law and equity, when one of two innocent persons "must suffer by the wrongful act of a third
person, the loss must be borne by the one whose negligence was the proximate cause of the loss or who put it into
the power of the third person to perpetrate the wrong." 105