Articles and Speeches
FDIC Actions Arising out of the Failure of Financial Institutions: Do Insured v. Insured Exclusions in D&O Policies Apply to the FDIC?
September 23, 2014
Gregory J. May
Reprinted with permission from The Banking Law Journal
The financial collapse of 2008 has caused a resurgence of civil claims that fortunately had not been seen much since the early 1990s: actions by the Federal Deposit Insurance Corporation (“FDIC”) to recover failed financial institution’s losses from the institution’s directors and officers. Since 2008, the FDIC has asserted a number of actions arising out of the failure of more than 100 banks under the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (“FIRREA”). FIRREA empowers the FDIC, in its capacity as a failed bank’s receiver, to bring civil claims against individual directors and officers for monetary damages caused as a result of their negligent or intentional tortious conduct.
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