Banking and Finance

Recent Posts

FDIC: Problem Institutions Decline, But Concerns Remain
Posted on 1 Mar 2012 by Kevin M. LaCroix

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... Read More

FDIC's Latest Failed Bank Lawsuit Includes D&O Insurer Defendant
Posted on 23 Jan 2012 by Kevin M. LaCroix

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... Read More

Under Scrutiny, FDIC Posts (Some) Failed Bank Suit Settlements Online
Posted on 20 Mar 2013 by Kevin M. LaCroix

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... Read More

Why Did the Bank Fail?: Defending Failed Bank Directors and Officers
Posted on 25 Feb 2014 by Kevin M. LaCroix

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... Read More

FDIC: Banking Sector Improves, Problem Banks Persist
Posted on 30 May 2013 by Kevin M. LaCroix

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... Read More

FDIC's Latest Failed Bank Litigation Update Reflects Increasing Lawsuit Filings
Posted on 23 May 2013 by LexisNexis Communities Staff

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... Read More

Is the FDIC Ramping Up Its Failed Bank Litigation?
Posted on 8 Mar 2012 by Kevin M. LaCroix

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... Read More

A Credit Crisis-Era Vestige: Fourth Circuit Affirms Bank Executives’ Criminal Conviction
Posted on 9 Jun 2015 by Kevin M. LaCroix

Federal prosecutors have come in for considerable criticism over their failure to press criminal charges against executives of financial institutions whose stumbles led to the global financial crisis. As Southern District of New York Judge Jed Rakoff... Read More

FDIC's Latest Failed Bank Lawsuit Targets Bank's Lawyers
Posted on 28 Oct 2011 by Kevin M. LaCroix

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... 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

FDIC's Latest Failed Bank Lawsuit Defendants Include Outside Directors and D&O Insurers; Also, Number of Problem Banks Declines
Posted on 25 Aug 2011 by Kevin M. LaCroix

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... 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