The FDIC as Receiver of Failed Banks: A Primer
Author: Ali Salameh.
Source: Volume 26, Number 06, July/August 2013 , pp.53-59(7)
Abstract:In the wake of the financial crisis of 2008, bank failures have had broad implications for depositors, creditors, guarantors, and vendors. This article examines the role of the Federal Deposit Insurance Corporation (FDIC) as a receiver of failed banks. There are unique issues that arise in FDIC litigation such as proper jurisdiction, automatic stay, removal to federal court, and tolling of the statute. As the statute of limitations for making a claim against the numerous institutions that failed in 2009 and 2010 approaches, it is essential that litigants in the process have a concrete understanding of the FDIC as a receivership.
Keywords: failed banks; receivership; FDIC litigation/claims; FDIC special powers; Director & Officer litigation; defenses against FDIC claims
Affiliations: 1: New York Law School.