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 Senior Managing Director Miami +305 341 5025 patrick.conroy@nera.com
Dr. Ling Ling Ang Managing Director Washington, DC
Chicago
+1 202 466 9259
+312 573 2827
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: 2022 Update White Paper Mary Elizabeth Stern and Lucy Allen
Trends in Canadian Securities Class Actions: 2021 Update White Paper Bradley A. Heys, Robert Patton, Jielei Mao
NERA Experts Contribute Chapter to "The Future of the Profit Split Method" Book Dr. Harlow Higginbotham and Dr. Vladimir Starkov
Trends in Canadian Securities Class Actions: 2020 Update Report Bradley A. Heys, Robert Patton, and Jielei Mao
Transfer Pricing Roundtable in Financier Worldwide. Expert QA Dr. Vladimir Starkov and Philip de Homont
Amount B: Facts and Circumstances Matter—Even for Routine Distributors Published Article Dr. Harlow Higinbotham, Dr. Niraja Srinivasan, and Dr. Vladimir Starkov
Recent Trends in Securities Class Action Litigation: 2020 Full-Year Review Report Janeen McIntosh and Svetlana Starykh
Recent Trends in Securities Class Action Litigation: H1 2020 Update Report Janeen McIntosh and Svetlana Starykh
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.