LexisNexis® Legal Newsroom
Potential Liabilities of Former Directors of Failed Banks

In the wake of the current round of bank failures, the FDIC has filed a number of lawsuits against former directors and officers of failed banks, and has indicated that it intends to file more. Among the issues this litigation raises is the question of when the former directors of a failed bank...

There Ought to be FDIC Lawsuits? Don't Bother, They're Here

Turns out that while some of us were wondering when the lawsuits arising out of the current bank wave would really start to accumulate, the FDIC itself was busy filing lawsuits -- they just didn't tell anybody about it, at least not until now. Specifically, the FDIC filed three more lawsuits...

Morrison & Foerster Client Alert-Living Wills: FDIC Approves Final Rules

Living Wills: FDIC Approves Final Rules By Dwight C. Smith, Alexandra Steinberg Barrage, and Jeremy Mandell On Tuesday morning, the Federal Deposit Insurance Corporation ("FDIC") Board unanimously approved two rules regarding resolution planning: one rule for large bank holding companies...

FDIC Issues Final Safe Harbor Rule

by Calvin Z. Cheng, Melissa D. Beck, Kenneth E. Kohler and Jerry R. Marlatt Recent weeks have seen a number of legal, regulatory and political developments in the realm of asset securitization, culminating for the moment on September 27 with the issuance by the FDIC of a long-awaited "safe harbor"...

FDIC's Latest Failed Bank Lawsuit Targets Bank's Lawyers

On October 25, 2011, the FDIC filed its latest failed bank lawsuit, in connection with events surrounding the July 2009 failure of Mutual Bank of Harvey, IL . The FDIC's complaint , which was filed in the Northern District of Illinois, names as defendants eight former directors and two former...

Williams Mullen Alert-Federal Reserve Board and FDIC Issue Final Rules to Require Certain Companies to Submit “Living Wills,” as Required by Dodd-Frank

by Edmund D. Harllee On Tuesday, November 1, 2011, the Board of Governors of the Federal Reserve System (the "Board") and the Federal Deposit Insurance Corporation (the "FDIC") each issued a final rule to implement the requirement, under Section 165(d) of the Dodd-Frank Wall Street...

Two Questions: Bank Closures Winding Down? FDIC WaMu Lawsuit Settled?

Whether the process is just winding down for the year or the process is actually winding down for good, the bank closure rate has recently fallen off dramatically. The FDIC has not taken over any banks for three weeks straight, with no bank closure at all so far during the month of December. And...

The Latest FDIC Failed Bank Lawsuit

On December 29, 2011, in what appears to have been the final year-end step as the FDIC ramped up its failed bank litigation activity during 2011, the FDIC filed a civil lawsuit in the Western District of North Carolina in is capacity as receiver of The Bank of Ashville, of Ashville, North Carolina, against...

Market Risk Capital Rules: Creditworthiness Standards to Replace Credit Ratings

On December 21, 2011 the Office of the Comptroller of the Currency ("OCC"), Board of Governors of the Federal Reserve System ("Board"), and Federal Deposit Insurance Corporation ("FDIC") (collectively, the "agencies") proposed rules on market risk capital (the...

FDIC Sues Former Officers of Failed California Bank

In its latest failed bank lawsuit, the FDIC, in its capacity as receiver of the failed County Bank of Merced, California, has filed a complaint against five former officer of the bank. The FDIC's complaint was filed in the United States District Court for the Eastern District of California on...

Cornerstone: What the FDIC's Failed Bank Lawsuits So Far Tell Us

Even as the number of bank failures now appears to be winding down, the FDIC's failed bank litigation filings seem to just be ramping up. With now 21 lawsuits filed as part of the current wave of bank failures, it may be possible to try to make some generalizations about the lawsuits so far. ...

FDIC: Problem Institutions Decline, But Concerns Remain

The FDIC's latest Quarterly Banking Profile for the period ending December 31, 2011, released February 28, 2012 ( here ), reflects a generally improving banking landscape and a continuing reduction in the number of problem institutions. But though the industry is showing improvement, the number...

Is the FDIC Ramping Up Its Failed Bank Litigation?

Though the current bank failure wave has been rolling for several years now and though there have been over 425 bank closures during that period , the much anticipated FDIC failed bank litigation has been slower to gain momentum - that is, perhaps, at least until now. Through the end of 2011, the...

The FDIC's Failed Bank Litigation, So Far

The number of bank failures has been winding down for a while now, but at same time the FDIC's failed bank litigation has been ramping up. Through April 20, 2012, the FDIC has filed a total of 29 lawsuits against former directors and officers of failed banks, involving 28 different institutions...

FDIC: Failed Bank and Failed Bank Litigation Update

The pace of bank closures has slowed to a trickle. There have only been three bank failures so far in 2013 (including one this past Friday evening, involving the Covenant Bank of Chicago, Illinois ). But while bank failures have dwindled, the number of failed bank lawsuit filings has surged. On February...

Under Scrutiny, FDIC Posts (Some) Failed Bank Suit Settlements Online

Possibly as a result of a barrage of recent press criticism for its nonpublic settlements, the FDIC has launched a page on its website to publish details regarding the settlements it has reached in failed bank claims. The page, which can be found here , acknowledges that it is not yet complete. Even...

FDIC's Latest Failed Bank Litigation Update Reflects Increasing Lawsuit Filings

According to the latest update on the FDIC's website, the pace of the agency's filing of failed bank lawsuits picked up considerably in the last month. According to the agency's website ( here ), which the agency updated on May 22, 2013 the agency has now filed a total of 63 lawsuits...

FDIC: Banking Sector Improves, Problem Banks Persist

The improvement in the banking sector continued in the first quarter of 2013, according to the FDIC's Quarterly Banking Profile for the first quarter of 2013, which the agency released on May 29, 2013. A copy of the Quarterly Banking Profile can be found here . Overall the industry reported aggregate...

Failed Colonial Bank's Accountants Lose Bid to Dismiss FDIC's Suit Against Them

A federal court has denied the motion of the accountants of the failed Colonial Bank’s holding company to dismiss the claims the FDIC, in its capacity as the failed bank’s receiver, had filed against them. As discussed here , the FDIC’s November 2012 lawsuit was the first the agency...

U.S. Supreme Court Will Not Hear Case Against FDIC Ruled as Time-Barred

WASHINGTON, D.C. — (Mealey’s) The U.S. Supreme Court on Oct. 7 refused to hear an appeal of a case in which the District of Columbia Circuit U.S. Court of Appeals affirmed a federal court’s dismissal as time-barred of a borrower’s home-foreclosure suit against the Federal Deposit...

Eleventh Circuit Rejects FDIC's "No Duty" Argument, Allows Post-Receivership Affirmative Defenses Against the Agency

One of the most contentious issues in the litigation the FDIC has been pursuing in its capacity as receiver of various failed banks is whether the defendant former directors and officers can assert affirmative defenses against the FDIC for the agency’s own conduct. In a part of a December 23...

Cornerstone Research: FDIC Lawsuits Continue to Mount, Individuals Contributing Out-of-Pocket to FDIC Claims Settlements

In 2013, the number of lawsuits the FDIC has filed against the directors and officers of failed banks reached the highest annual level during the current wave of failed bank litigation, though the pace of litigation filings peaked in the second quarter and slowed as the year progressed, according to...

FDIC: Banks Improve, Number of Problem Institutions Continues to Decline

The commercial banking industry is continuing its rebound from the subprime meltdown and the global financial crisis. According to the FDIC’s latest Quarterly Banking Profile for the period ending December 31, 2014 ( here ), the industry’s overall earnings continue to improve, largely as...

FDIC Files Libor Manipulation Lawsuit for Alleged Harm to Failed Banks

On March 14, 2014, In the latest development in the long-running saga of the Libor scandal , the FDIC in its capacity as receiver of 38 banking institutions that failed between 2008 and 2011, has filed a massive new lawsuit in the Southern District of New York against the U.S. dollar Libor rate-setting...

ACH Compliance Webinar: Understanding Regulations that Affect ACH Transactions

Every year there are new or enhanced compliance requirements for processing payments. The biggest challenge is knowing when you have satisfied all of the appropriate requirements for all of the regulations. In addition to complying with the NACHA Operating Rules when processing ACH transactions (one...