Mealey's Banking & Finance - Judge Allows FDIC Suit Against Former Bank Executives To Continue

Mealey's Banking & Finance - Judge Allows FDIC Suit Against Former Bank Executives To Continue

CHICAGO - A federal judge in Illinois on March 19 refused to dismiss the Federal Deposit Insurance Corp.'s suit alleging that gross negligence by the former officers of Midwest Bank & Trust Co. caused the now-closed bank to lose $62 million in unpaid loans and $66 million in preferred stock it held in Fannie Mae and Freddie Mac, finding that the business judgment rule does not warrant dismissal (Federal Deposit Insurance Corp. v. James J. Giancola, et al., No. 13-3230, N.D. Ill.; 2014 U.S. Dist. LEXIS 35791).

Access this news story on lexis.com®