FDIC's $219M Suit Blames Advanta Execs For Bank's Collapse

Law360, New York (June 19, 2013, 2:20 PM EDT) -- The Federal Deposit Insurance Corp. launched suit Monday in Pennsylvania federal court to recover $219 million from two top executives of the failed Advanta Bank Corp. who allegedly crippled the bank and alienated customers by increasing credit card interest rates to unprecedented levels.

The FDIC alleges that Advanta’s former chairman and CEO Dennis J. Alter and president and board vice chairman William A. Rosoff stubbornly raised annual percentage rates on its credit card customers to prop up parent company Advanta Corp.’s crumbling stock price and maintain...
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