Financial Institutions and Banking

Failed Bank Litigation

Failed Bank Litigation

In the aftermath of the financial crisis, the FDIC has filed lawsuits against directors and officers (D&O) of approximately one-quarter of failed banks. While the number of bank failures has been declining, the number of D&O lawsuits is on the rise. Typical D&O lawsuits allege failure to satisfy duties of loyalty and care and attempt to develop evidence of unsafe and unsound banking practices, poor loan underwriting policies and practices, and/or dishonest conduct and abusive transactions with insiders.
 
Clients rely on NERA to perform detailed and objective analysis on regulatory, risk management, accounting, and D&O duty issues in the context of bank litigation. Our experts have significant bank supervision and policy-making experience, as well as direct experience working for banking organizations. This background allows for a comprehensive and definitive expert assessment of the reasonableness of bank strategies, lending practices, accounting, and regulatory compliance. Additionally, given NERA's well-established economic, research, and analysis capabilities we are able to comprehensively assess all the potential factors contributing to a given bank's failure, to ensure that D&O decisions are considered in the proper context without hindsight bias.

Name Title Location Phone Email
Dr. Patrick Conroy Managing Director New York City +1 212 345 1466 patrick.conroy@nera.com
Dr. Ling Ling Ang Associate Director New York City
Washington, DC
+1 212 345 5409
+1 202 466 9259
lingling.ang@nera.com
Ivelina Velikova Senior Consultant New York City +1 212 345 1160 ivelina.velikova@nera.com
Title Type Author
Snapshot of Recent Trends in Asbestos Litigation: 2020 Update Report Mary Elizabeth C. Stern and Lucy P. Allen
Regulation Across the Border: Developments in Canadian and US Consumer Financial Serv... Published Article Ling Ling Ang, et al.
Economic and Financial Analyses in Australian Securities Litigation in the Wake of TP... White Paper Dr. David Tabak and Dr. Will Taylor
Recent Trends in Securities Class Action Litigation: Q1 2020 Update White Paper Janeen McIntosh.and Svetlana Starykh
How Are Different Types of Stocks Weathering COVID-19? Published Article By Dr. Jordan Milev
Trends in Canadian Securities Class Actions: 2019 Update Report Bradley A. Heys, Robert Patton, Jielei Mao
Recent Trends in Securities Class Action Litigation: 2019 Full-Year Review Report Janeen McIntosh and Svetlana Starykh
Fed's Real-Time Payments Idea Presents Risks, Challenges Published Article Ling Ling Ang, with Judy Mok
Recent Trends in US Securities Class Action Litigation: H1 2019 Update Report Janeen McIntosh and Svetlana Starykh
Snapshot of Recent Trends in Asbestos Litigation: 2019 Update Report Mary Elizabeth C. Stern and Lucy P. Allen