FDIC Sues Defunct Fla. Bank Leaders Over Loan Practices

Law360, Miami (August 5, 2013, 9:29 PM EDT) -- The Federal Deposit Insurance Corporation filed suit as receiver for defunct Florida-based Wakulla Bank against five former bank officials, seeking more than $14 million in damages for their alleged negligence and breach of fiduciary duty for engaging in unsound lending practices.

After commencing an aggressive growth initiative in 2002 that focused on high-risk commercial real estate loans, the five officials, who comprised the bank's top executives, board of directors and loan committee, each played a role in approving a series of poorly underwritten loans between 2003...
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