Statute Of Limitations Looming, FDIC Is Targeting Execs

The Federal Deposit Insurance Corporation has filed a spate of lawsuits against executives of banks that failed following the financial crisis. The timing is explained by the fact that the number of bank failures peaked in 2010: It takes an average 18 months for an FDIC bank-failure investigation, and the statute of limitations for these kinds of cases is three years. Going after individuals mirrors the SEC’s announced new approach and, as the authors note, “it will be interesting to see how this approach will be received by the courts.” Details about this development, including who is getting sued and for how much, are laid out in a  Cornerstone Research study that is linked to this post.