FDIC Prepares to Crack Down on Officials of Failed Banks
(LA Times) — For former insiders at some of the several hundred banks that collapsed during the financial crisis and in its aftermath, a day of reckoning has arrived. The Federal Deposit Insurance Corp. has told dozens of former bank officers and directors that it has drawn up lawsuits accusing them of misdeeds such as fraud and breach of fiduciary duty. The federal agency is seeking damages to help offset losses in the nation’s deposit insurance fund. It’s time, the FDIC warns these officials, to sit down and work out settlements — or head to court to decide the matters there.