Post on 18-Dec-2015
2010 PLUS International Conference
Back to the Future:A New Wave of FDIC Litigation
2010 PLUS International Conference
The Round-Up…
Moderator:• Diane Parker Esq., Assistant Vice President, Professional Liability Claims,
Allied World Assurance Company
Panelists:• Gary V. Dixon, Esq., Partner, Troutman Sanders LLC
• Susan N.K. Gummow, Esq., Partner, Butler Pappas Weihmuller KatzCraig LLP
• Jennifer Nierenberg Metzger, Esq., Complex Claims Director, CNA Corporate and Financial Claims
• Floyd “Rob” Robinson, Esq., Senior Counsel, Professional Liability and Financial Crimes Unit, Federal Deposit Insurance Corporation
2010 PLUS International Conference
“Temporal displacement has occurred…”
• Destination Time: The Banking Crisis of the 1980s
• Present Time: The Financial Crisis of 2008 - ?
• “Not That There’s Any Danger”:
Litigating with the FDIC
• “Who’s Gonna Pay for THIS?”
D&O Coverage, Then & Now
2010 PLUS International Conference
“I gave you explicit instructions
not to come here,
but to go directly back to 1985!”
2010 PLUS International Conference
The Banking Crisis of the 1980s
• Profile of Bank and S&L Failures
• Causes of Bank and S&L Failures
• RTC and FDIC Professional Liability Claims
• Observations About the 1980s Crisis
2010 PLUS International Conference
“I had to wait 30 years
to catch up to you.”
2010 PLUS International Conference
The Financial Crisis of 2008 - ?
• Profile of Bank Failures
• Causes of Bank Failures
• FDIC Professional Liability Claims
• Observations About the Current Crisis
2010 PLUS International Conference
Bank and Thrift Failures, 2007 to Date
Year Number of Institutions
2007 3
2008 25
2009 140
2010 (as ofOct. 22) 139
2010 PLUS International Conference
Bank and Thrift Failures, 2008 – 2010
YearsNumber of
Failed Institutions
AssetsAssets - Inflation Adjusted
1982 - 1994 2,341 $657.1 B $1.12 T
Jul. 2004 – Jan. 2007
0 0 0
2008 – Oct. 22, 2010
304 $630.1 B $638.2 B
2010 PLUS International Conference
Bank and Thrift Failures, 2007 – 2010, by State
StateNumber of
FailuresAssets
Georgia 47 $25.6 B
Florida 43 $32.4 B
Illinois 38 $30.5 B
California 32 $102.4 B
2010 PLUS International Conference
Bank and Thrift Failures, 2007 – 2010, by Assets
StateNumber of
FailuresAssets
Nevada 10 $315.4 B
California 32 $102.4 B
Florida 43 $32.4 B
Illinois 38 $30.5 B
2010 PLUS International Conference
“Not that there’s any danger . . . but it never hurts to take precautions.”
2010 PLUS International Conference
Litigating with the FDIC
• Pre-Suit Investigations and Demands
• Dual Role of FDIC (conservator/receiver)
• Special Statutory Powers of the FDIC
• FDIC as Intervener: Impact on Third Parties
2010 PLUS International Conference
“Can I assume that your insurance will pay for this?”
2010 PLUS International Conference
D&O Insurance Issues
Common coverage issues in FDIC D&O litigation
(then and now)• Definition of Claim• Notice of Claim / Circumstance• Exclusions
Regulatory Insured v. Insured Specific Claim / Litigation / Event Prior Notice / Interrelated Wrongful Acts Prior or Pending / Prior Act
2010 PLUS International Conference
“Where you’re going,
there are no roads.”
2010 PLUS International Conference
Questions&
Answers
2010 PLUS International Conference
Many Thanks To…
• Diane Parker
• Gary Dixon
• Susan Gummow
• Jennifer Nierenberg Metzger
• Floyd “Rob” Robinson