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Liability Risks for Directors and Officers of Financial Institutions

Now more than at any time since the savings and loan crisis in the 1980s, directors and officers of financial institutions must be aware of liability risks related to performance of their duties. The FDIC is on a litigation campaign.

By Martin A. Traber, Michael P. Matthews, Justin Moore | Updated on March 14, 2011

Now more than at any time since the savings and loan (S&L) crisis in the 1980s, directors and officers of financial institutions must be aware of liability risks related to performance of their duties.

All indications point toward the Federal Deposit Insurance Corporation (FDIC) digging in for a litigation campaign against bank directors and officers of the same size and scope as the S&L crisis. On Nov. 1, 2010, the FDIC filed its second lawsuit against officers of a failed bank, Heritage Community Bank in Illinois, following the FDIC’s first such suit in July 2010 against former officers of IndyMac Bank. On Jan. 14, 2011, the FDIC filed two more suits against former officers of Integrity Bank of Alpharetta, Ga., and of 1st Centennial Bank in California. 

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