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A Failed Bank, A Lawsuit, And Some Interesting Questions

Though 268 banks have failed since January 1, 2008, there has been relatively little litigation related to the failed banks, as least so far. For example, the FDIC only recently filed its first action against former directors and officers of a failed bank (as discussed here ). There have also been relatively...

New Preemption Exceptions May Broaden State Consumer Protection Law Enforcement

By Oluwaseun O. Ajayi and Kendra C. Kinnaird Stepped-up enforcement of state consumer protection laws in the field of home mortgage lending is inevitable for all types of lenders, including those with federal charters. Federal banks and thrifts, long accustomed to preemption, must plan to comply with...

Florida Federal Judge Says Bank Directors Not Liable For Ordinary Negligence In Failed Bank Lawsuit

A federal court has ruled in the only FDIC failed bank lawsuit pending in Florida that directors cannot be liable for ordinary negligence under Florida law. On August 8, 2012, Middle District of Florida Judge Gregory Presnell granted the motion of the director defendants to dismiss the FDIC's claim...

Standard & Poor's Sued Over Inflated Ratings On Structured Debt Securities

LOS ANGELES - (Mealey's) The U.S. government on Feb. 5 announced the filing of a lawsuit in California federal court against Standard & Poor's Ratings Services alleging that the ratings agency lied about its objectivity and independence and issued inflated ratings on certain structured debt...

The Week In Securities Litigation: DOJ Files Significant Market Crisis Case Against Rating Agency

The Department of Justice filed one of the most significant market crisis cases this week against a major rating agency as a defendant. The case centers on years of false statements about ratings given to RMBS and CDOs, according to the complaint, as the market crisis evolved and the market for those...