FDIC Says Copying Records Could Cost Bank Bosses

Law360, New York (March 19, 2012, 6:05 PM EDT) -- The Federal Deposit Insurance Corp. on Monday warned banks and their attorneys that the copy and removal of bank records by directors and officers ahead of litigation breaches their fiduciary duty, saying it has observed several such incidents.

In a financial institution letter issued to all FDIC-supervised institutions — including community banks with less than $1 billion in assets — the FDIC also said the practice is an unsafe and unsound banking practice. The letter said the practice also may violate applicable laws and regulations and...
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