The FDIC released a report that indicates their intent to “sue professionals who played a role in the failure of the [financial] institution in order to maximize recoveries.”  The report later goes to explain that it has 46 lawsuits that are aimed at the professional service firms who were engaged to work on failed banks before they went insolvent.  Some of these parties include law firms for professional malpractice.  The FDIC acts as receiver for the failed banks and has the right to initiate claims against firms who may have had a part in the failure.

ProtectLawyers.com reminds firms that when engaging higher-risk client and working in higher-risk industries, it is important to review the risk management and insurance coverage the firm carries.  Exclusions, coverage parts, policy wording, limits and deductibles all play a role in determining whether a firm has the right protection for their work.  Contact us for an assessment of your current coverage.