Regulators Want $2.5 Billion From Bank Execs

[Donnachaidh]

http://abcnews.go.com/Business/wireStory?id=12540772

WASHINGTON (Reuters) - U.S. banking regulators have authorized lawsuits against 109 bank officials so far as they seek to recover at least $2.5 billion in losses connected to recent bank failures.

The Federal Deposit Insurance Corp said on Tuesday the suits target bank directors and officers for "either gross or simple negligence." It is seeking to recoup money for its deposit insurance fund, which backs customer accounts.

The FDIC has previously said it was pursuing such legal actions but now has unveiled a website with updated numbers.

The website will be updated monthly with a running tally of the amount of lawsuits authorized and how much the agency is seeking to recover. So far, however, the FDIC has only filed suits against directors and officers from two banks.

In November, the agency sued former executives and directors of Heritage Community Bank of Illinois. When the bank failed in February 2009, the FDIC estimated it would cost the insurance fund $41.6 million.

More at the link --

[Jackpine Radical]

1. Peanuts.

That number needs about 3 zeros behind it.

[Donnachaidh]

7. that was my thought too

We're gonna get a dog and pony show on how much they are going *after* these people. What we won't be told is the backroom deals made so the rich bastards don't get hit too hard.

[eleny]

2. _

[dixiegrrrrl]

3. This ought to be interesting. My money is on the banks.

:popcorn:

[KILL THE WISE ONE]

4. Now FOX will have to malign the FDIC.

[earth mom]

5. Didn't the banksters get away with TRILLIONS? 2.5 Billion is chump change to them!

:grr:

[Jackpine Radical]

10. Well, that's my understanding of the situation.

[Fumesucker]

6. And people in hell want ice water..

I suspect the folks in hell will get ice water before regulators get $2.5 billion out of the banksters.

[dkf]

8. Finally.

When do they get that AIG guy?

[aquart]

9. That better just be the appetizer.

[ljm2002]

11. Lawsuits? Lawsuits?? Where are the criminal indictments???

So far, none of the banksters has been charged with criminal malfeasance of any kind, even though their FRAUDULENT offerings nearly crashed the world economy.

Ho hum, business as usual. We're all supposed to be impressed or something that the government is trying to get $2.5B back from a handful of them.

What a steaming pile.