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Category Archives: FDIC & Bank Failures

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No Setoff for FDIC Contract Repudiation Damages Under Placida v. FDIC

Posted in Attorneys Fees and Costs, FDIC & Bank Failures, Florida, States, Uncategorized

When a bank fails and the FDIC repudiates a construction loan—ending further “draws” or disbursements—the borrowers can’t setoff damages they suffer because of repudiation to reduce the amount of debt they owe under the loan. That’s what a panel of judges from the US Court of Appeals for the 11th Circuit decided in Placida v…. Continue Reading

FDIC vs. Construction Lenders Jury Verdict: IndyMac Bankers Liable for $169 Million

Posted in California, Construction Finance and Insolvency, FDIC & Bank Failures, States

Jurors awarded this $169M verdict (PDF) against three former IndyMac Bank executives for originating dubious construction and development loans. It happened last Friday in Los Angeles at the US District Court for the Central District of California. $169M Verdict Against Former Indyac Bank Executives In their original complaint (PDF), the FDIC alleged: That the former… Continue Reading

How to Stop a Bank Run

Posted in FDIC & Bank Failures

The recent trouble surrounding banks in Greece got NPR’s Planet Money team to produce piece on how to stop a bank run. There’s 3 traditional tools. To learn about them we have to go back to the bank failures in the Great Depression and before. The story starts at this laundromat, once the Bronx branch… Continue Reading

How Does D’Oench, Duhme Apply to Failed Credit Unions: Campbell v. Castle Stone Homes

Posted in D'Oench, Duhme, FDIC & Bank Failures

Like failed banks, the D’Oench, Duhme doctrine applies to claims against the National Credit Union Administration Board (“NCUAB”) acting as liquidator for a failed credit union.  And D’Oench, Duhme has a statutory companion for failed credit unions in the Federal Credit Union Act too: 12 U.S.C. §1787(p)(2).  A federal court in Utah recently used the D’Oench, Duhme doctrine… Continue Reading