FDIC Files Civil Suit Against Former Integrity Bank Officials

More banks have failed in Georgia than any other state as part of the current bank failure wave, but the FDIC had not yet filed a civil action against the former officials of a failed Georgia bank - that is, until now. On January 14, 2011, in what is the third FDIC lawsuit overall against former officials...

The List: The FDIC's Civil Actions Against Former Officials of Failed Banks

As detailed in the accompanying blog post , all signs are that the FDIC will be filing increasing numbers of civil actions against former officials of banks that have been closed as part of the current round of bank failures. With this possibility in mind, it seems like it is time for The D&O Diary...

How Extensive Will the FDIC's Claims Against Failed Banks' Outside Professionals Be?

If the lawsuit filed on February 7, 2011 in the Northern District of Georgia is any indication, the FDIC's efforts to pursue liability claims will not only include suits against the directors and officers of failed banks, but will also include in at least some instances the failed institutions'...

FDIC Failed Bank Litigation Progresses - Slowly

The FDIC's pursuit of litigation against directors and officers of banks that have failed as part of the current round of bank failures has been moving forward, albeit at a deliberate pace. The agency's litigation efforts advanced a couple of steps in recent days, as the agency filed an additional...

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...

FDIC's Latest Failed Bank Lawsuit Defendants Include Outside Directors and D&O Insurers; Also, Number of Problem Banks Declines

On August 22, 2011, when the FDIC filed a lawsuit related to the collapse of Silverton Bank, which is Georgia's largest failed bank, the named defendants included not only bank officers that the regulators allege are responsible for the bank's failure, but also the bank's former outside...

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...

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...

FDIC Failed Bank Litigation and the Insured vs. Insured Exclusion

An inevitable part of the current wave of bank failures has been the FDIC's filing of lawsuits against former directors and officers of the failed institutions. And though the FDIC's initiation of this litigation has been gradual, the lawsuits have now started to accumulate in significant...

FDIC's Latest Failed Bank Lawsuit Includes D&O Insurer Defendant

In the FDIC's latest lawsuit filed in its role as receiver of a failed bank, the FDIC not only named as defendants nineteen former directors and officers of the failed bank, but also included as defendants seventeen of their spouses and the failed bank's D&O insurer. A copy of the FDIC's...

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...

NERA Projects FDIC Failed Bank Litigation Could Ultimately Total 86 Lawsuits

In a May 31, 2012 study of the FDIC failed bank litigation that contains a number of interesting observations and projections, NERA Economic Consulting projects at the current filing rate, the FDIC's failed bank litigation ultimately could total 86 lawsuits, or much as 20% of all banks that have...

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...

Jury Verdict in Failed Bank Legal Malpractice Action

As discussed in an article in the Sarasota Herald Tribune ( here ), on May 22, 2013, a Middle District of Florida jury returned a verdict against Sarasota law firm Icard Merrill , and one of its partners, Robert Messick , in a legal malpractice action arising out of the collapse of the failed First...

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...

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...

Why Did the Bank Fail?: Defending Failed Bank Directors and Officers

Since the early stages of the financial crisis, nearly 500 banks have failed across the U.S., and even though we are now well past the peak of the financial crisis, banks continue to fail. Yet during the same time as scores of banks were failing, many more banks did not fail – which raises the...

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...