Banking and Finance

Recent Posts

Williams Mullen: FDIC Issues Final Rule Permitting Interest on Demand Deposits of State Non-Member Banks per Dodd-Frank
Posted on 20 Jul 2011 by Williams Mullen

by Edmund D. Harllee Section 627 of the Dodd-Frank Wall Street Reform and Consumer Protection Act repeals the prohibition against the payment of interest on demand deposits, effective July 21, 2011. On Thursday, July 14, 2011, the Federal Deposit... Read More

Two Questions: Bank Closures Winding Down? FDIC WaMu Lawsuit Settled?
Posted on 12 Dec 2011 by Kevin M. LaCroix

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... Read More

FDIC Sues Three WaMu Execs and Their Wives, Settles with Outside Directors
Posted on 18 Mar 2011 by Kevin M. LaCroix

As recently as this past Monday, commentators were grumbling that the FDIC is moving too slowly in pursue claims against former directors and officers of failed banks. The FDIC has responded in dramatic fashion with a March 16, 2011 lawsuit filing... Read More

FDIC: Banks Improve, Number of Problem Institutions Continues to Decline
Posted on 28 Feb 2014 by Kevin M. LaCroix

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... Read More

Morrison & Foerster Client Alert-Living Wills: FDIC Approves Final Rules
Posted on 19 Sep 2011 by Morrison and Foerster LLP

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... Read More

ACH Compliance Webinar: Understanding Regulations that Affect ACH Transactions
Posted on 16 Apr 2014 by Marge Simmons

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... Read More

Eleventh Circuit Rejects FDIC's "No Duty" Argument, Allows Post-Receivership Affirmative Defenses Against the Agency
Posted on 13 Jan 2014 by Kevin M. LaCroix

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... Read More

Failed Colonial Bank's Accountants Lose Bid to Dismiss FDIC's Suit Against Them
Posted on 12 Sep 2013 by Kevin M. LaCroix

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... Read More

Cornerstone: What the FDIC's Failed Bank Lawsuits So Far Tell Us
Posted on 6 Feb 2012 by Kevin M. LaCroix

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... Read More

The List: The FDIC's Civil Actions Against Former Officials of Failed Banks
Posted on 20 Jan 2011 by Kevin M. LaCroix

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... Read More

FDIC Files Suit Against Former Haven Trust Directors and Officers
Posted on 15 Jul 2011 by Kevin M. LaCroix

On July 14, 2011, the FDIC filed a lawsuit in the Northern District of Georgia against 15 former directors and officers of Haven Trust Bank of Duluth, Georgia. This suit is the ninth the FDIC has filed as part of the current bank failure wave and the... Read More

U.S. Supreme Court Will Not Hear Case Against FDIC Ruled as Time-Barred
Posted on 8 Oct 2013 by Michael J. Lello

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... Read More

FDIC: Number of Problem Institutions Remains at Record Levels
Posted on 26 May 2011 by Kevin M. LaCroix

According to FDIC's Quarterly Banking Profile, released on May 24, 2011 (refer here ), the pace of bank failures slowed during the first quarter. However, both the absolute and relative number of problem institutions continued to increase, albeit... Read More

There Ought to be FDIC Lawsuits? Don't Bother, They're Here
Posted on 19 Sep 2011 by Kevin M. LaCroix

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.... Read More

Failed Bank-Related Activity Looming and Other Web Notes
Posted on 23 Nov 2010 by Kevin M. LaCroix

The lead article in the November 17, 2010 Wall Street Journal reported that the FDIC is conducting 50 criminal investigations of directors, officers and employees of failed banks. Given that (as of November 19, 2010) 314 banks have failed since January... Read More