FDIC Plan to File Lawsuits Creates D&O Policy Coverage Questions

Reports that the Federal Deposit Insurance Corp. (FDIC) has given the green light to sue more than 50 directors and officers of failed banks has one broker asking if the agency did its due diligence before deciding to sue. “With a lot of these [D&O] policies, limits have been depleted – terms have been carved back,” said Michael White, senior vice president of Willis’ Executive Risks Practice. “They are barebones policies.”