The Federal Deposit Insurance Corporation has slowly started filing lawsuits against directors and officers of failed banks, but suits—and corresponding insurance claims—are likely to mushroom, according to banking and D&O liability insurance experts.
In fact, one former banking regulator said that the existence of D&O insurance is the starting point for FDIC officials when they evaluate whether or not to file the suits.
Speaking at the D&O Symposium of the Professional Liability Underwriting Society early this month, Brian McCormally, a 20-year veteran of the Office of the Comptroller of the Currency and the Office of Thrift Supervision, also said the FDIC is likely to file several hundred suits in the next five years—far more than the figure of just over a hundred being advanced by the agency itself.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
