Cornerstone: What the FDIC's Failed Bank Lawsuits So Far Tell Us

Cornerstone: What the FDIC's Failed Bank Lawsuits So Far Tell Us - 2/6/2012 , Class Action News, Class Action, Securities News, shareholder class action, claim, litigation, securities action, common stock'>

Home

Index of Filings

News and Press Releases

Filings

Decisions

Settlements

Litigation Activity Indices

Top Ten List

Annual/Quarterly Updates

Clearinghouse Research

Articles & Papers

Search

Related Sites

About Us

Local Rules

Sponsors

Register

_______________
Copyright © 2001
Stanford Law School

2012 News and Press Releases

SEARCH

News	News 2012
HEADLINES \| SETTLEMENTS AND DISMISSALS \| COURT FILINGS LINKS TO OTHER NEWS \| NEWS ARCHIVE	HEADLINES ARCHIVED SETTLEMENTS AND DISMISSALS ARCHIVED

HEADLINE NEWS:

Cornerstone: What the FDIC's Failed Bank Lawsuits So Far Tell Us
Kevin LaCroix

The D & O Diary. February 6, 2012
_________________________________________________________________________

EXCERPT Even as the number of bank failures now appears to be winding down, the FDIC’s failed bank litigation filings seem to just be ramping up. With now 21 lawsuits filed as part of the current wave of bank failures, it may be possible to try to make some generalizations about the lawsuits so far. In a February 1, 2012 post on BankDirector.com entitled “Characteristics of FDIC Lawsuits against Directors & Officers of Failed Financial Institutions” (here), Cornerstone Research takes a look at the FDIC’s failed bank lawsuits to date and finds, among other things, that the suits so far have involved larger institutions within the same geographic concentrations as the bank failures themselves. As discussed below, Cornerstone Research’s various findings may have important implications for the lawsuit filings that are yet to come. The Cornerstone Research study reports that the FDIC has filed lawsuits so far in connection with only about 4.7% of financial institutions failures since January 1, 2007. Two suits were filed in 2010, 16 in 2011, and three so far in 2012. The study also reports that on average the FDIC has waited about 2.2 years after the date of an institution’s failure to file a lawsuit. […]

Back to News page | Back to Archived News 2012 page | Back to Top

�