Know the Standard of FDIC Liability for Community Banks
Law360Aaron C. Mahler
Over 400 financial institutions have failed since the financial crisis began in September 2008, causing hundreds of billions of dollars in losses to the Deposit Insurance Fund (DIF). On July 2, 2010, the Federal Deposit Insurance Corporation began its efforts to recover losses to the DIF when it sued officers of IndyMac Bank, then the second largest bank to fail in U.S. history. The FDIC has filed a total of 41 professional liability lawsuits against former bank directors and officers of failed institutions. A majority of the complaints have involved small or medium size banks.
Originally published by Law360. Reprinted with permission.