FDIC Seeks $4.6M D&O Coverage For Failed Ill. Bank

Law360, New York (June 10, 2011, 7:44 PM EDT) -- The Federal Deposit Insurance Corp., acting as receiver for a failed Illinois bank, sued OneBeacon Midwest Insurance Co. on Friday in federal court, seeking $4.6 million in coverage for losses related to allegedly fraudulent loans made by two of the bank's former directors.

Wheatland Bank’s former President and CEO Michael A. Sykes and former director Arthur P. Sundry Jr. caused the bank to make improper loans for the benefit of Mezzanine Finance LLC, which Sykes and Sundry owned with a third investor, the FDIC says....
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