Although today’s lending economy continues to follow a fairly steady path toward stability, the recent economic downturn has given rise to an increasing number of lawsuits by the Federal Deposit Insurance Corporation (“FDIC”) seeking to impose personal liability against directors and officers of failed financial institutions.
In 2009, the FDIC received authorization to pursue 11 lawsuits against directors and officers for personal liability, while in 2012, the FDIC received authorization to pursue 369 personal liability lawsuits against directors and officers. As of April 15, the FDIC was on pace to authorize more than 400 lawsuits against directors and officers of failed institutions this year.
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Topics: Debt Restructuring, Economic Downturn, FDIC, Financial Institution Liability, Loans, Personal Liability, Restructuring
Published In: Bankruptcy Updates, Business Organization Updates, General Business Updates, Finance & Banking Updates
DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
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