FDIC seal

The AABD has posted documents for the following lawsuits brought by the FDIC against officers and directors as receiver for failed banks.

AABD is opposed to suits filed against directors where the actions taken by the directors were in good faith.

Many FDIC suits are reminiscent of lawsuits filed by the RTC against directors of failed savings institutions 20 or more years ago by not distinguishing between board members and lending officers in the role of approving loans. In its seminal study on RTC lawsuits during that period, AABD concluded that the RTC complaints placed outside board members in the shoes of loan officers when the board members approved loans recommended by management.

Those suits ignored a fundamental corporate law rule that exists in most (if not all) states: that directors are entitled to rely reasonably on officers and others in making decisions, including approving loans.