Here Come the Clawbacks!

Perhaps the long awaited punitive phase of the bailouts are about to begin, courtesy of this FDIC announcement:

The Federal Deposit Insurance Corp. has authorized more than 50 lawsuits against officers and directors of failed banks as the agency aims to recoup more than $1 billion in losses stemming from the credit crisis.

The lawsuits were authorized during closed sessions of the FDIC board and haven’t been made public. The agency, which has shuttered 294 lenders since the start of 2008, has held off court action while conducting settlement talks with executives whose actions may have led to bank collapses, Richard Osterman, the FDIC’s acting general counsel, said in an interview.

“We’re ready to go,” Osterman said. “We could walk into court tomorrow and file the lawsuits.”

Awesome — and overdue.

Next up for clawbacks: The various iBank execs who destroyed their own firms through their recklessness and risk-taking. Then, State Attorney Generals do criminal prosecution of bank execs, lawyers, process servicers, whose gross negligence or willful recklessness  led to illegal foreclosures.

A boy can dream . . .

FDIC May Seek More Than $1 Billion From Failed-Bank Executives
Phil Mattingly
Bloomberg, Oct. 8 2010

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