WASHINGTON, March 11 The Federal Deposit
Insurance Corp collected $787 million in settlements to resolve
civil claims related to bank failures from 2007 through 2012,
according to statistics compiled by the Los Angeles Times.
Many of those settlements are not widely known, because the
agency usually does not issue press releases and announce the
settlements, the newspaper said.
Deutsche Bank, for example, paid $54 million to
settle a case in 2010 over unsound loans it sold to
California-based IndyMac Bank, it said.
The paper said it obtained 1,600 pages of settlement records
through a Freedom of Information Act request.
FDIC spokesman Andrew Gray said the agency many sue
professionals involved in the failure of an institution it
insures, and may settle those claims if the result is a
"satisfactory recovery" that avoids costly litigation.
"When a settlement agreement is reached, terms and
conditions are publicly available, as federal law prohibits the
FDIC from entering into confidential settlements with
professionals of failed institutions," he said in a statement.
Sinced 2007, 471 U.S. banks have failed since, the paper
said, saddling the FDIC deposit insurance fund with $92.5
billion in losses.
Some lawmakers and others have criticized federal regulators
for what they perceive as weak settlements that address conduct
that contributed to the 2007-2009 financial crisis.