Preparing for the New Wave of FDIC Suits Against Bank Directors and Officers
In the wake of the greatest financial crisis since the Great Depression, it is not surprising that directors and officers of financial institutions find themselves under intense scrutiny. The FDIC recently announced that it has authorized suits against at least 187 executives of the more than 356 banks that have been closed by regulators since January 1, 2008. Currently, there are over 884 banks on the FDIC’s watch list, and losses to the Deposit Insurance Fund are projected to reach $45 billion for the period June 30, 2009, through 2013.
This article first appeared in Washington Bankers Association Issues and Answers magazine.