FDIC Suit Blames Fla. Bank's Failure On Its Executives

Law360, New York (April 19, 2013, 5:29 PM EDT) -- The Federal Deposit Insurance Corp. is taking aim at the former CEO and executives of now-defunct Riverside National Bank of Florida, accusing them in a lawsuit filed in Florida federal court of driving the bank into ruin by continuing risky lending practices and improper underwriting.

The bank's executives ignored warnings from regulators by continuing to make loans backed by shares of entities affiliated with RNB, according to the suit filed April 15 in U.S. District Court for the Southern District of Florida. This contributed to the...
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