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Former IndyMac Officers Cannot Rely on Business Judgment Rule as Defense in FDIC Failed Bank Lawsuit

On October 5, 2012, in the latest in a series of decisions addressing the question whether or not corporate officers (as differentiated from corporate directors) are entitled under California law to rely on the protections of the business judgment rule, Central District of California Judge Dale Fischer...

FDIC Files First Suit Against Failed Bank's Accountants

On November 1, 2012, in what is the first lawsuit the FDIC has filed as part of the current bank failure wave against a failed bank's accountants, the FDIC, as receiver for the failed Colonial Bank, has filed an action in the Middle District of Alabama against Pricewaterhouse Coopers and Crowe Horwath...

FDIC Files First Lawsuit As Part of Current Wave Against Failed Bank Accountants

On November 1, 2012, in what is the first lawsuit the FDIC has filed as part of the current bank failure wave against a failed bank's accountants, the FDIC, as receiver for the failed Colonial Bank, has filed an action in the Middle District of Alabama against Pricewaterhouse Coopers and Crowe Horwath...

Jury Enters $168.8 Million Verdict Against Former IndyMac Executives

LOS ANGELES - (Mealey's) A jury in a California federal court on Dec. 7 entered a $168.8 million verdict against three former officers of the failed IndyMac Bank F.S.B., finding that the individuals had been negligent and breached their fiduciary duties with respect to 23 loans at issue in the suit...

NERA: Securities Suit Filings Stable, But Settlements and Dismissals Are Down

New securities class action lawsuit filing levels were comparable to historical norms during 2012, but the number of settlements and of dismissals were both down for the year, according to the analysis and projections of NERA Economic Consulting in their December 11, 2012 publication "Flash Update...

Former IndyMac CEO Agrees To $12 Million Settlement With FDIC

LOS ANGELES - (Mealey's) Former IndyMac FSB CEO Michael Perry on Dec. 14 agreed to a $12 million settlement to resolve the Federal Deposit Insurance Corp.'s $600 million suit over his alleged role in the bank's failure, according to a stipulation of dismissal with prejudice filed in a California...

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...

D&O Insurance: Insured vs. Insured Exclusion Unambiguously Precludes Coverage for FDIC Failed Bank Lawsuit

One of the recurring D&O insurance coverage issues that has arisen during the current wave of failed bank litigation has been the question whether coverage for an action by the FDIC in its role as receiver of a failed bank against a failed bank’s directors and officers is precluded by the Insured...

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...

Federal Agencies Propose New Federal Flood Insurance Regulations

The Federal Deposit Insurance Corporation recently approved for release joint proposed regulations to implement provisions of the Biggert-Waters Flood Insurance Reform Act of 2012 (the Act). The proposal would amend the Flood Disaster Protection Act of 1973 (FDPA) requirements relating to the escrow...

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...

Banks Booming: Earned $40.3 Billion in the Fourth Quarter

Commercial banks and savings institutions insured by the Federal Deposit Insurance Corporation (FDIC) reported aggregate net income of $40.3 billion in the fourth quarter of 2013, a $5.8 billion (16.9 percent) increase from the $34.4 billion in earnings that the industry reported a year earlier. This...

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...

17 Large Banks Manipulated LIBOR, FDIC Claims

The Federal Deposit Insurance Corporation, as receiver for dozens of failed banks including Washington Mutual and IndyMac Bancorp, has sued 17 large banks, alleging that they manipulated LIBOR – the London interbank offered rate – over approximately a four-year period. The suit contends...

Jury Convicts CEO in $1 Billion Check Kiting Scheme

Mair Faibish, the former chief executive officer of Synergy Brands, Inc., has been convicted by a federal jury in Brooklyn on all three counts of the indictment for defrauding Signature Bank out of $26 million through a massive check kiting scheme, for making false statements to the U.S. Securities and...

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...

Failed NC Bank Execs Granted Summary Judgment on All FDIC Claims

On September 11, 2014, in a sharply worded order that will give heart to the FDIC’s many other failed bank litigation targets, Eastern District of North Carolina Judge Terrence Boyle, applying North Carolina law, granted the summary judgment motion of the former directors and officers of the failed...

D&O Insurance: Insured vs. Insured Exclusion Applicability to FDIC Failed Bank Claim Held Ambiguous

As I have previously noted on this blog, one of the recurring D&O insurance coverage issues arising during the latest bank failure wave has been the question whether the Insured vs. Insured Exclusion precludes coverage for claims brought by the FDIC in its capacity as receiver for a failed bank against...

A Closer Look at an FDIC Failed Bank Lawsuit Settlement

According to the FDIC’s website ( here ), as of March 24, 2015, 44 of the 106 failed bank lawsuits the agency has filed have settled. So there is nothing particularly newsworthy about the fact that the parties to another one of the failed bank lawsuit had reached a settlement. Just the same, however...