The AABD is posting a list and links to the lawsuits brought by the FDIC against officers and directors as receiver for failed banks.

The AABD has filed an amicus brief opposing the FDIC's position in its suit against Bryan Cave that bank directors have no right to access or possess bank records for use in their defense of possible lawsuits by the FDIC and others following the closing of their banks. The brief argues that bank directors have a right to copy bank records while the bank is open in order to preserve such documents and to use the documents, following the closing of their banks, in their defense.

AABD has requested FDIC Chairman Bair to permit bank directors to copy or have access to bank documents they need to defend themselves against suits by the FDIC as receiver of their institutions. The FDIC recently asserted in a lawsuit against a law firm that had been retained by the board of directors of a bank that ultimately failed that the directors had no right to such documents and demanded that the firm return all fees paid by the bank to assist the board members in preparing for a possible suit against them.

On November 1, 2010, the FDIC sued the directors of Heritage Community Bank for $20 million. The bank was closed in 2009. AABD is opposed to suits filed against directors where the actions taken by the directors were in good faith. A special report on this case will be posted on the site shortly.

After doubling and redoubling its professional liability division staff over the past several years, the FDIC is now actively pursuing directors of failed banks that it believes are legally responsible for causing the banks to fail. AABD is taking steps to help assure that directors will be treated fairly and responsibly. The attached article from US Banker's July 2010 issue highlights the use of demand letters by the FDIC in pursuing its claims against directors.

HILDA SOLIS, Secretary of Labor, — v. — TENNESSEE COMMERCE BANCORP, INC., - - - ON APPEAL FROM THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF TENNESSEE

The American Association of Bank Directors ("AABD") today announced its opposition to certain provisions in The Student Loan Sunshine Act (H.R. 890) that may jeopardize bank directors' service on college boards of trustees. The House of Representatives passed the measure on May 9, 2007, and on August 1, 2007, the Senate Banking Committee reported out a similar measure. AABD believes that there may be hundreds if not thousands of bank directors who also serve on the board of trustees of colleges throughout the United States.

From its inception, AABD has striven to help assure that bank directors are given reasonable protections against personal liability and the tools with which to meet their duties and responsibilities. The Cardinal Bankshares Corporation case pending in the Fourth Circuit Federal Court of Appeals and at the Department of Labor has the potential of eroding these protections and therefore the AABD has filed amicus briefs in the case.

The American Association of Bank Directors ("AABD") announced today that its AABD Task Force on Asset Freezes has issued the "Report on the Use of Federal Financial Institution Asset Freeze Authority."