FDIC Sues Dead Bank Over Millions In Bad Loans

Law360, New York (January 26, 2011, 12:36 PM EST) -- The Federal Deposit Insurance Corp. is suing 14 officers and directors of now-defunct First Centennial Bank, saying they drove the bank into the ground and forced the FDIC to pay $163 million to cover depositors.

The FDIC filed the lawsuit Jan. 14 in the U.S. District Court for the Central District of California. Earlier in January, the FDIC announced it had authorized lawsuits against more than 100 directors and officers of failed banks to claw back about $2.5 billion lost to bad loans.

The FDIC is...
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