LexisNexis® Legal Newsroom
FDIC Sues Three WaMu Execs and Their Wives, Settles with Outside Directors

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...

As Banks Fail, Will Insurance Coverage Lawsuits Follow?

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 the interpretation...

A Time-Ripened Tale of Toxic Assets, a Corporate Spin-Out and a Failed Bank

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...

Two Questions: Bank Closures Winding Down? FDIC WaMu Lawsuit Settled?

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 December. And...

Banks: Forget Too Big to Fail, How About Too Small to Succeed?

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...