The economy is recovering, but for many community banks, it is too little too late. Plagued by bad construction and commercial real estate loans, largely put on the books during the early and mid-2000s, many have shuttered their doors, and others teeter at the brink of disaster. In order to maximize recoveries for failed banks, the FDIC is increasingly pursuing legal actions against their directors and officers.
This webcast and the corresponding report, sponsored by OneBeacon Professional Insurance, will review the causes behind the recent surge in bank failures, assess the current state of affairs for troubled banks, and analyze the tactics now being pursued by the FDIC against former community bank directors and officers as it attempts to maximize recoveries for failed institutions. Additionally, the protections available through D&O insurance will be explained.
Register for this free one hour webinar sponsored by OneBeacon Professional Insurance at: https://www1.gotomeeting.com/register/619606104
Community Bank Lending: Practices and Failures, and the Role of Directors and Officers (D&O) Liability Insurance
Community banks largely avoided problems with the subprime mortgage market meltdown that threw world financial markets into chaos, but the credit crunch and recession that followed led to skyrocketing delinquencies and defaults of construction and commercial real estate loans. The number of bank failures, and the number of banks on the FDIC's problem bank list, is declining, but many community banks are not yet out of the woods. Defaults on CRE loans remain elevated and, despite write-downs and a return to more conservative underwriting standards, many banks remain highly exposed to these loans.
Hand-in-hand with the threat of insolvency is the threat of regulatory investigations, civil lawsuits and criminal lawsuits. After a quiet couple of years, during which the FDIC was building cases against the directors and officers of failed banks, the number of lawsuits brought by the regulator grew sharply in 2011 and is increasing rapidly in 2012. Publicly traded community banks also may be subjected to investigations, regulatory enforcement actions and lawsuits by the SEC, though the recently-enacted JOBS Act allows many community banks to remove themselves from SEC scrutiny.
This webcast and the corresponding report, sponsored by OneBeacon Professional Insurance, will review the causes behind the recent surge in bank failures, assess the current state of affairs for troubled banks, and analyze the tactics now being pursued by the FDIC against former community bank directors and officers as it attempts to maximize recoveries for failed institutions. Additionally, the protections available through D&O insurance will be explained.
