Economics: FDIC Prepares to Sue More than 50 Bank Officials to Recover $1 Billion in Losses

The Federal Deposit Insurance Corp. has authorized lawsuits against more than 50 executives at failed banks across the country in an attempt to recover more than $1 billion of the agency's losses during the credit crisis.

More than 50 bank officers and directors were negligent, committed fraud or otherwise breached their duties and are, therefore, legally liable, the FDIC concluded after lengthy investigations into the first wave of bank failures.

"These investigations are now beginning to produce results, and we anticipate that many more will be authorized," FDIC Chairman Sheila C. Bair said in a statement Friday evening. "As a matter of policy, the FDIC believes strongly in accountability for directors and officers whose personal misconduct led to a bank's failure."

For more, see FDIC Prepares to Sue More than 50 Bank Officials to Recover $1 Billion in Losses by Peter Whoriskey, October 8, 2010 at The Washington Post.