Talking about FDIC goes after former execs of failed banks to recover losses « HousingWire

 

Quote

FDIC goes after former execs of failed banks to recover losses « HousingWire

The Federal Deposit Insurance Corp. may sue as many as 109 former executives of failed banks in an effort to recover federal losses. According to data, which the agency began releasing Tuesday, the FDIC authorized lawsuits to recover approximately $2.5 billion. The FDIC can sue former bank officials after a bank failure in what it calls a "personal liability lawsuit," because the federal agency absorbs all the losses from the failure. Before seeking recoveries from former officials, the FDIC investigates the cause of each bank’s failure. Executives including officers, directors, accountants, appraisers and brokers are eligible to be sued for either "gross or simple negligence" in overseeing the bank and its funds. Between 1985 and 1992, the FDIC brought claims against directors and officers in 24% of bank failures. In 2010, two lawsuits were filed with 107 others authorized.

Advertisements
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s