FDIC Continues to Collect from D&O Lawsuits and Claims

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On July 25, 2014 the FDIC released its Professional Liability Lawsuits Updates. The link is below.

Some notable items:

  • $6.8B – the amount collected from FDIC for professional liability claims from 1986 through 2012 by the FDIC (and former Resolution Trust Corporation); $1.9B is the amount spent to fund all professional liability claims and investigations from 1985 through 2012
  • FDIC has authorized suits against 145 failed institutions and 1171 individuals in the past five years (January 1, 2009, through July 24, 2014).
  • Included in the above are 97 filed D&O lawsuits (26 of which have fully settled and 1 of which resulted in a favorable jury verdict) naming 749 former directors and officers.
  • In addition, the FDIC has authorized 60 other lawsuits for RMBS, LIBOR suppression, fidelity bond, insurance, accounting malpractice, appraiser malpractice, and attorney malpractice claims. 
  • Finally, the FDIC has 84 residential mortgage malpractice and fraud lawsuits pending.  

For the full FDIC Professional Liability Lawsuits Update of July 25, 2014 click on this link: https://www.fdic.gov/bank/individual/failed/pls/index.html

Make sure your D&O coverage is up to date!

For more information on Berkley FinSecure’s management liability products click here and contact your agent or broker today.

The post FDIC Continues to Collect from D&O Lawsuits and Claims appeared first on Berkley FinSecure.

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