Our Experience

Beal Bank, S.S.B. v. Federal Deposit Insurance Corp.

  • Practice Area(s): Banking, Complex Civil Litigation, Fair & Responsible Banking, Litigation, Loan Repurchase, Unfair, Deceptive & Abusive Acts and Practices, Unfair, Deceptive & Abusive Acts and Practices Litigation
  • Attorney(s): Sandler, Andrew L.
  • Case Date(s): 2002
  • Court: D.D.C.
  • Judge: Leon, Richard J.
  • State: Dist. of Columbia
  • Docket No. 1:02-CV-02146

Successfully represented Beal Bank in its lawsuit against the FDIC. Beal Bank brought the suit after purchasing thousands of FDIC-originated mortgages in 2001 and 2002. In the suit, Beal claimed borrowers defaulted at alarmingly high rates due to the FDIC's poor oversight of lending practices at failed Superior Bank. Superior Banks was seized by the regulator in 2001 and it continued operations for months, making new loans, as it looked for a buyer. Beal sued the FDIC in October 2002, seeking to recover damages arising from the regulator's alleged breaches of contract regarding subprime mortgage portfolios the bank bought from it. Ultimately, the FDIC agreed to pay $90 million to settle allegations it gave out high-interest subprime mortgages to unqualified borrowers.