Search Results for 'Legal'


How Bank Officers and Directors Can Avoid Liability September 06, 2010 Many cases brought against bank directors and officers involve “improper, unauthorized, excessive or badly documented loans or overdrafts,” warns the insurer Zurich in a 24-page risk management guide for directors and officers of financial institutions. Directors should never allow... Continued... Indexed by: Legal \| Mangement
Court Ruling, Fine Print Helps Insurers Block D&O Coverage September 06, 2010 Banks have begun to encounter language in their D&O liability insurance policies that is making the policies much harder to enforce. And one of the methods used by carriers - requiring a separately signed warranty letter at the time of policy placement – has withstood a Circuit Court... Continued... Indexed by: Legal
IRS Targets How Banks Are Treating Non-Performing Loans; Accrual Interest, Deductions at Issue August 30, 2010 The IRS has created special teams to scrutinize bank income tax returns, questioning bad debt deductions and making sure that accrual interest on non-performing loans is treated properly, according to IRS Non-Performing Loans Directive #1. The rub: While bank regulators require banks to stop... Continued... Indexed by: Accounting \| Asset Quality \| Legal
How Banks Can Opt for the Bad Debt Conformity Election August 30, 2010 File IRS Form 3115, Application for Change in Accounting Method. You must file the form with your tax return for the first year you are making the conformity election. Get a letter from your primary federal banking regulator that states you follow loan losslassification standards that are in... Continued... Indexed by: Accounting \| Asset Quality \| Legal
Bank Employees Who Suspect Accounting, Underwriting Misdeeds Get New Protections August 09, 2010 Bank directors and officers may need to look over their shoulders more carefully. Buried in the fine print of the newly passed financial reform act is the most significant tightening of whistleblower protections since Sarbanes-Oxley – with specific provisions to protect employees at financial... Continued... Indexed by: Legal \| Legislation \| Management
6 Ways Directors and Officers Can Get Ready for Potential FDIC Litigation August 02, 2010 Understand your D&O insurance policies before the bank closes, suggests attorney Thomas Bieging, a partner with Bieging, Shapiro and Burrus in Denver. Find out whether the amount of your coverage is diminished by fees for defense of claims, he adds, and whether you can select your own counsel... Continued... Indexed by: FDIC \| Legal \| Troubled Banks
FDIC Sues IndyMac Officers, Civil Demand Letters Widespread August 02, 2010 Expect more lawsuits like the one the FDIC filed in July against four former IndyMac Bank officers for alleged “negligence and breach of fiduciary duties.” The FDIC confirms it actively is investigating former bank directors and officers at failed banks across the country, sending out... Continued... Indexed by: FDIC \| Legal \| Troubled Banks
How to Avoid CRE CDO Lawsuits July 26, 2010 The fact that a disclosure highlights one asset over another can make it difficult to argue that the misstatements are immaterial in a breach of contract claim. Here’s some advice from Jones Day attorney Jay Tambe on what banks can do: *Set up procedures to handle all information centrally... Continued... Indexed by: Legal
New Wave of Lawsuits Likely over Commercial Real Estate Debt July 26, 2010 Banks may soon be subject to a massive wave of new lawsuits related to commercial real estate collateralized debt obligations, warns attorney Jay Tambe, a partner at Jones Day in New York and co-leader of its Financial Institutions Litigation & Regulation Practice. The reason: The delinquency... Continued... Indexed by: Legal
Social Media Confront Banks with Newfangled Safety & Soundness Risks July 12, 2010 Hey Facebook Friends, we just received a C&D! Could someone in your bank post such a message on Facebook? How about a tweet to the same effect, using Twitter? The phrase above has 38 characters, and a bank employee could add another 102 and stay within the Twitter per message limit. Something... Continued... Indexed by: Legal \| Management