Insurer Fights Covering FDIC In $71M Silverton Suit

Law360, New York (October 31, 2011, 7:34 PM EDT) -- An insurer argued Monday in Georgia that a policy exclusion barred it from having to cover the Federal Deposit Insurance Corp.'s $71 million lawsuit accusing former executives of now-insolvent Silverton Bank NA of breaching fiduciary duties.

The FDIC launched the suit Aug. 22, accusing former directors and officers of Silverton Bank of engaging in corporate waste, negligence and gross negligence as well as breaching fiduciary duties through mismanagement of the bank. The FDIC's lawsuit also seeks a declaratory judgment that Westchester Fire Insurance Co. and Federal...
To view the full article, register now.