4.3: Investigation and Resolution

Potential recoveries, including claims against professionals, are investigated and are pursued and resolved in a fair and cost-effective manner.

Other Information:

Means & Strategies: When an insured depository institution fails, the FDIC, as receiver, acquires a group of legal rights, titles and privileges generally known as professional liability claims. The FDIC's attorneys and investigators work together to assure that valid claims arising from a failure of an insured institution are properly pursued. The team conducts a factual investigation of the events that contributed to losses at the institution as well as legal research and analysis of the facts and potential claims. The team prepares additional analysis to determine the likelihood of a recovery exceeding the estimated costs of pursuing claims. Finally, the team prepares a memorandum recommending that claims be pursued or that an investigation be closed. The FDIC believes that the prompt investigation and evaluation of potential claims against professionals who may have caused losses to the institution (such as directors, officers, attorneys and accountants) enhance the fairness of the process and lead to more cost-effective results. External Factors: No external factors were identified that could affect the accomplishment of this objective.

Indicator(s):

Indicator:1

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