In 2009, there were 140 failed banks. So far this year, 16 more banks have been seized by the FDIC. There are 702 banks currently on the FDIC’s troubled banks list, and regulators and analysts predict that several hundred of those likely will fail over the next two years.
Officers and directors of troubled financial institutions should pay serious and immediate attention to their risk of personal liability should their bank fail because the risk of litigation is becoming increasingly high. However, there are actions that can be taken to minimize as much as possible the risk of personal liability to bank agencies and shareholders when a bank fails.
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Tags: banking, banks, FDIC, Jim Lehman, Len Rubin, Neil Grayson, Nelson Mullins, Personal Liability
