Copyright: | (c) 2010 SourceMedia Inc , Source: The Financial Times Limited |
Source: | Financial Times Limited |
Wordcount: | 773 |
Nearly two years after the regulator let a film crew tag along as it seized the
The litigation, or at least the threat of a lawsuit, could be enough to make leaders of other troubled banks squirm, with the broader potential of spurring more distressed sales, industry experts said. “If you are a director of a troubled community bank and you have had your head in the sand, this is your siren,” said
That is if a bank can find a buyer. Some lawyers believe a fear of professional liability is hefty enough that some bankers might even pay an acquirer.
“In the late 70s, I remember a seriously troubled bank where the directors paid the buyer to take the bank over, thinking I would rather pay than for us to fail and for the
The level of fear may hinge on what happens with Heritage or the other 70 former officers and directors that the
On
In the case of Heritage, the
The leaders of Heritage said they were blindsided like everyone else. “The
The
Gerrish said the
That’s dwindling, said
As troubled community banks take notice, so are insurers, said
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