FDIC Can't Intervene In IndyMac Coverage Suit: Judge

Law360, New York (December 2, 2011, 9:32 PM EST) -- A California federal judge on Wednesday said the Federal Deposit Insurance Corp. cannot intervene in a declaratory judgment suit brought by insurers of IndyMac Bancorp seeking to avoid paying defense coverage for company executives in lawsuits stemming from the bank's collapse.

U.S. District Judge R. Gary Klausner ruled that the FDIC, a receiver for IndyMac, did not have a legally protected interest relevant to the seven underlying suits, in two of which it is a plaintiff against IndyMac. Judge Klausner stated that the underlying actions are...
To view the full article, register now.