FDIC May Have Selfish Motives For Rare D&O Guidance

Law360, New York (October 23, 2013, 8:46 PM EDT) -- The Federal Deposit Insurance Corp. recently prodded bank executives to be cautious about policy language that could wipe out directors and officers coverage, an unusual step that appears to be at least partly motivated by the FDIC's pursuit of insurance funds through lawsuits against former management at failed banks.

In an Oct. 10 letter, the FDIC alerted board members and bank officers that newer provisions in directors and officers policies could raise their exposure to civil suits and urged them to carefully consider exclusions in their...
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