Tag: FDIC

  • Bank Directors and Officers targeted in 2011

    The final numbers are in for 2011, and it was a record year for Director and Officer (D&O) lawsuits by the FDIC.  In 2011 alone, 264 defendants were named in FDIC lawsuits.  To put that in perspective, that’s more than twice the number sued in the previous 2 years combined.  Some of the most frequently…

  • FDIC offers “Insight” on Mobile Banking

    Although not considered official supervisory guidance, the most recent FDIC Supervisory Insights newsletter offers an instructive early look into how the agency might examine this emerging electronic banking delivery method in the future.  (Before you tune out and decide to wait for the formal guidance, remember it was the Winter 2009 issue that first introduced…

  • Material Loss Reviews: Does responsibility = liability?

    I asked in my previous post whether or not the regulators should share any of the blame when institutions fail, and if so, should they shoulder any of the liability?  The thought occurred to me as I was reviewing some recent Material Loss Reviews. A Material Loss Review (MLR)  is a post-mortum written by the…

  • FDIC Sues Bank Directors (again)

    On June 19, 2009 Cooperative Bank in Wilmington, NC was closed by the North Carolina Commissioner of Banks and the FDIC.  Federal banking regulators are now suing Cooperative Bank’s chairman and eight members of the board of directors for more than $145 million for negligence and breaches of fiduciary duty.  One of the FDIC’s assertions…

  • Exam preparation – less equals more?

    One of the more surprising findings from my recent examination experience survey (thanks again to all that participated!) is that there doesn’t seem to be a direct relationship between the amount of time spent preparing, and examination results. I’ll elaborate in a moment, but first, here are the final survey demographics: There were 80 total…

  • BCP plans continue to draw criticism

    In a recent FDIC IT Examination, the examiner made the following criticism of the institutions’ DR/BCP: “Business continuity planing should focus on all critical business functions that need to be recovered to resume operations. Continuity planing for technology alone should no longer be the primary focus of a BCP, but rather viewed as one critical…