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F.D.I.C. Seeks $2.5 Billion From Executives of Failed Banks - NYTimes.com
I'm always amazed at how few people realize that banks fail all the time...Yes the accounts are insured by FDIC so the clients don't lose any money however it feeds the perception that banks are by and large safer than Insurance Companies.
The agency, which had to contend with 157 bank failures last year, may sue bank directors and officers for what it considers gross or simple negligence.
Two bank suits, naming 15 people, have already been filed, the agency said, along with four authorized for fidelity bond and attorney malpractice, and 190 concerning residential malpractice and mortgage fraud.
The F.D.I.C. guarantees individual deposits of up to $250,000, but when a bank fails, the agency’s insurance fund takes a hit, and lawsuits against negligent bank officers are one way it seeks to recover money.
I'm always amazed at how few people realize that banks fail all the time...Yes the accounts are insured by FDIC so the clients don't lose any money however it feeds the perception that banks are by and large safer than Insurance Companies.