In the wake of the current round of bank failures, the
FDIC has filed
a number of lawsuits against former directors and officers of failed banks,
indicated that it intends to file more. Among the issues this litigation
raises is the question of when the former directors of a failed bank...
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. Specifically, the FDIC filed three
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
planning: one rule for large bank holding companies...
by Calvin Z. Cheng, Melissa D. Beck, Kenneth
E. Kohler and Jerry R. Marlatt
Recent weeks have seen a number
of legal, regulatory and political developments in the realm of asset
securitization, culminating for the moment on September 27 with the issuance by
the FDIC of a long-awaited "safe harbor"...
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
defendants eight former directors and two former...
by Edmund D. Harllee
Tuesday, November 1, 2011, the Board of Governors of the Federal Reserve System
(the "Board") and the Federal Deposit Insurance Corporation (the "FDIC") each
issued a final rule to implement the requirement, under Section 165(d) of the
Dodd-Frank Wall Street...
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
On December 29, 2011, in what appears to have been the final year-end step as the FDIC ramped up its failed bank litigation activity during 2011, the FDIC filed a civil lawsuit in the Western District of North Carolina in is capacity as receiver of The Bank of Ashville, of Ashville, North Carolina, against...
On December 21, 2011 the Office of the Comptroller of the
Currency ("OCC"), Board of Governors of the Federal Reserve System ("Board"),
and Federal Deposit Insurance Corporation ("FDIC") (collectively, the
"agencies") proposed rules on market risk capital (the...
In its latest failed bank lawsuit, the FDIC, in its
capacity as receiver of the failed County Bank of Merced, California, has filed
a complaint against five former officer of the bank. The FDIC's complaint was
filed in the United States District Court for the Eastern District of
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 some generalizations about the lawsuits so far.
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 the industry is showing improvement, the number...
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, at least until
now. Through the end of 2011, the...
The number of bank failures has been winding down for a
while now, but at same time the FDIC's failed bank litigation has been ramping
up. Through April 20, 2012, the FDIC has filed a total of 29 lawsuits against
former directors and officers of failed banks, involving 28 different
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...
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...
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
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
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...
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...
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...
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...
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...
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...
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...