Officers at failed banks may see a wave of lawsuits from the FDIC as the three-year period the regulatory body has to take action comes to a close for a number of banks, legal firm Bryan Cave's banking unit says.
Bank failures spiked in 2009, to 140 from 25 the year before. The three-year period the FDIC has to charge officers at those banks with negligence or other wrongdoing ends this year.
The most recent FDIC suit, against a failed California bank, came just days before that period came to an end, Bryan Cave points out. The FDIC has now sued officers and directors at about 20 failed banks.