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FDIC Urges Ga. Justices to Say Bank Directors can be Personally Liable

FDIC asks justices to find that bank directors can be held personally liable for financial negligence

, Daily Report

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The Supreme Court of Georgia is considering whether a Georgia law protects the corporate officers and former executives of a Buckhead bank that failed under their watch from personal liability for the bank's losses even if they neglected their corporate duties.

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  • cs

    Well the board of directors, officers at Darby Bank were the bank and yes they were negligent! They made ALL loan decisions. So they should be held accountable. Yes negligent! After bank closed, some files only had client initials on files, yet board had approved loans without proper application etc in files, money was funneled to these chosen clients, no questions asked, i call that negligent and frankly discrimination.

  • Concerned

    The reality is that the FDIC is going after officers and directors who were victims of the great recession, and nothing more. In the absence of collusion or bad faith ordinary directors should be found negligent under the business judgment rule only if they were willful, or acted in bad faith. To require experts to serve on bank boards undermines community banking.

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