FDIC Seeks Lawyer Documents as Federal Suits Loom Against Failed BanksSubmitted by bobbyw24 on Sat, 11/20/2010 - 09:14
The Federal Deposit Insurance Corp. has sued one law firm and threatened to sue another to obtain documents lawyers received from executives at five banks that have failed since the onset of the credit crisis.
The FDIC seeks the return of files and records that officers and directors at the five financial institutions copied and gave to private lawyers before their banks collapsed, according to documents in two cases filed in federal court in Atlanta.
The FDIC is also preparing to file negligence and fraud suits against executives of failed banks. The FDIC board has authorized civil suits against more than 80 officers and directors of failed banks, while the bank regulator and the FBI are cooperating on about 50 cases of possible criminal violations involving former and current bank employees and customers.