Preparing for the New Wave of FDIC Suits Against Bank Directors and Officers

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Directors and officers are the most likely FDIC targets for recovery claims since, in many cases, they are covered by “D&O” insurance. Typically, the FDIC asserts claims for gross negligence, negligence and breach of fiduciary duty. It may also seek restitution or indemnification from executives for unjust enrichment or reckless disregard of any law, regulation or regulatory directive, and civil penalties of up to $1 million.

How can directors and officers of failed and failing lending institutions prepare to defend themselves for the day the FDIC comes calling?

Among the steps bank directors, officers and their counsel should take now before the first signs of trouble to defend themselves from possible claims are the following...

Please see full article below for more information.

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Published In: Business Organization Updates, Business Torts Updates, Finance & Banking Updates, Insurance Updates, Personal Injury 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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