Kevin Toomey Discusses FDIC Director and Officer Suits With Bank Director

Kevin Toomey, head of Arnold & Porter’s Financial Services practice, was recently quoted in the Bank Director article, “Serving on a Bank Board: Target on Your Back.” The story examines the rising legal risks for bank board members in light of the Federal Deposit Insurance Corporation’s (FDIC) lawsuit against 11 Silicon Valley Bank board members after its collapse.

Toomey explained that, under certain circumstances, the FDIC may pursue recovery from the personal assets of directors. He noted that the agency can sell loans, repudiate vendor contracts, and sue outside auditors and attorneys, “and most often, they sue officers and directors.” He also highlighted the agency’s well-honed recovery strategy, which often includes subpoenas for personal financial information.

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