FDIC suits against failed financial institutions seeing a spike

The FDIC must file a D&O lawsuit within three to four years of a financial institution failing

The failures of the financial crisis are now starting to be felt in court rooms, as the Federal Deposit Insurance Corporation (FDIC) has reported that director and officer (D&O) litigation against failed financial institutions spiked in 2013 following multiple 2009 and 2010 bank failures.

A report from Cornerstone Research indicates that nearly 40 percent of the 297 financial institutions that failed in 2009 or 2010 have been subject to FDIC litigation or have settled with the FDIC prior to a lawsuit.

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Zach Warren

Zach Warren is Assistant Editor of InsideCounsel magazine, where he oversees online content submissions and administers InsideCounsel's enewsletters. Zach specializes in new media and multimedia...

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