On March 25, 2015, the FDIC released its March 2015 Professional Liability Update. Of note, from January 2009 through March 25, 2015, the FDIC has authorized suits in connection with 149 failed institutions against 1195 individuals for D&O liability. This includes 106 filed D&O lawsuits naming 800 former directors and officers. The FDIC also has authorized 61 other lawsuits for RMBS, LIBOR suppression, fidelity bond, insurance, accounting malpractice, appraiser malpractice, and attorney malpractice claims.
As referenced in the update, the FDIC as receiver for a failed financial institution, may sue professionals who caused losses to the institution in order to maximize recoveries. These individuals can include officers and directors, attorneys, accountants, appraisers, brokers, or others. Professional liability claims also include direct claims against insurance carriers such as fidelity bond carriers and title insurance companies. In their capacity as receiver, the FDIC has at least three years for tort claims and six years for breach-of-contract claims to file suit from the time a bank is closed. If state law permits a longer time, the longer state statute of limitations is followed.