Lawsuits filed by the Federal Deposit Insurance Corporation (FDIC) against chief executives of failed financial institutions have outpaced new filings in any period of the past three years, shows a new research study.
According to economic analyst Cornerstone Research, at least 32 suits were filed so far this year, and the rate is increasing as time passes: there were 10 lawsuits filed in the first quarter, 15 in the second quarter, and seven already filed in the third quarter.
“There is a huge outcry in Washington about why there are not more criminal convictions coming out of the financial crisis, so the government is putting more emphasis on pursuing civil cases than sentencing for bail,” says Geoffrey Fallon, a D&O educator for the Risk and Insurance Management Society (RIMS).
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