Legal Actions by the FDIC to Recover Losses of Failed Banks: Spring Follow-up
- April 28, 2011
David Baris, Sam Buffone, and David Krakoff participated in the AABD’s free-of-charge webinar on Thursday, April 28, 2011, at 12 PM, EST, which showed you and your board how to mitigate your risks of personal liability from FDIC suits. Our program on this subject last November generated great interest. We wanted to provide the opportunity to participate to those who may have missed last year’s program. In addition, strategies to protect bank directors are evolving; this program provided up-to-date developments.
What's included in this practical guide:
Preparing for the Worst
In the post financial crisis environment large numbers of FDIC insured institutions have either failed or are at risk of failing. The FDIC is prepared to sue officers and directors of certain of these institutions for personal financial liability for the losses to the insurance fund.
- Lessons Learned from the S&L Crisis: Following the S&L crisis the FDIC brought claims against the former officers and directors of over one quarter of the institutions that failed.
- The Feds Gear Up: The FDIC has significantly expanded its Professional Liability and Financial Crimes units and task forces have been established across federal law enforcement agencies.
Post Failure Investigations by the FDIC
Professional liability claim reviews of officers and directors are conducted as part of the FDIC’s takeover of any failed institution.
- Events at Closing: The FDIC assumes all rights of the institution including its relationship with its lawyers and control of its files.
- Interviews at Bank Closing and Later: A trap for the unprepared.
- Use of Investigative Subpoenas: Officers and directors targeted for personal financial information.
- Demand Letters: Use of demands for payment by officers and directors.
- Suits Against Officers and Directors: How are they authorized and when are they brought.
- Criminal and Civil Referrals To Other Agencies: Criminal prosecutions in cases of fraud and abuse.
FDIC Lawsuits Against Officers and Directors
- Claims For Breach Of The Duty of Loyalty
- Claims For the Breach Of The Duty of Care
What Can Officers and Directors Do Now to Protect Their Interests and the Interests of Their Institution
A practical tool kit of steps that can be taken pre-seizure to prepare for the worst case scenario.
Click here to learn more.