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 in the Western District
of Washington against three...
One of the many distinctive traits of the litigation that
surrounded the S&L crisis in the late 80s and early 90s was the plethora of
lawsuits between the FDIC (and other federal banking regulators), on the
one hand, and the failed banks' insurers, on the other hand, over
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
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...
Guaranty Bank of Austin, Texas's August 21,
2009 closure is the fourth-largest bank failure during the current wave of
bank failures and the tenth largest bank failure in U.S. history. The
bank's failure, which came just 15 months after its publicly traded
holding company spun out of Temple...
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 at all so far during the month of
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...
When Southern District of New York Judge Naomi Reice
her order in the consolidated LIBOR litigation on March 29, 2013, she
dismissed the plaintiffs' antitrust and RICO claims against the LIBOR
rate-setting banks, and she also declined to exercise supplemental
The recent decision in Britt v. Twin City Fire Insurance Co. , C.A. No. 8SACV 12-1355-JST (JPRx), slip op. (C.D. Cal. June 26, 2013), highlights some important insurance considerations for private equity funds and the individuals they place as directors or officers at portfolio companies...
According to the FDIC’s latest Quarterly Banking Profile ( here ), as of September 30, 2013, there were 6,891 federally insured banking institutions, down from 6,940 at the end of the second quarter and down from 7,141 as of September 30, 2012. There were 8,680 banking institutions as recently...
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...