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While Jim McMahon was a standout for the Chicago Bears in the 1980s, the former NFL quarterback did not go on to have such a strong career in the banking industry. The Chicago Sun-Times recently reported the FDIC is currently suing McMahon for his role in the 2010 failure of Chicago-based Broadway Bank.
Broadway Bank, like many other financial institutions, made some high-risk loans that came back to bite the bank and the FDIC's insurance funds when those loans weren't repaid. In McMahon's case, the lawsuit spells out that the Super Bowl-winning quarterback didn't display such exemplary leadership skills when he served on Broadway's Board of Directors. From approving a loan that lost the bank $19.5 million to missing important meetings, the lawsuit throws him in with many other executives at banks whose carelessness allegedly contributed to the economic slowdown, created hassle for account holders and cost the FDIC's Deposit Insurance Fund a lot of money.
This isn't the first lawsuit the FDIC has filed, either. According to Philip Shiskin at Reuters, the FDIC has filed 22 lawsuits over the past 18 months "targeting personal finances of former executives, their insurance policies, and sometimes their spouses' assets, in an attempt to claw back some of the money."
Still, if you think about the number of banks that failed over the past few years, 22 seems small in the grand scheme of collecting some of these funds. More than 400 banks have shuttered their doors since 2008, and I'm guessing there are more executives who should be held responsible for poor decision-making. Shiskin highlights that some critics argue that the FDIC has failed to make the extra effort to recoup some of the costs of these failures, citing the $95 million WaMu settlement. The FDIC initially stated that it was seeking up to $900 million in the damages from the most well-known bank failure of the past few years.
What do you think? Should the FDIC be more aggressive in holding banking executives accountable for their role in a financial failure?
Well we tried deregulation, I guess it didn't work.
What happened to the Rule of Law & Order Party???
What happened to Personal Responsibility??
What happened To the "Savings" on my phone bill?
We gave "Trickle Down" a 30 year shot,
The only things that "went down" were a Bridge, A Rig in the Gulf, & New Orleans, or are you gonna blame those on somebody else too??
It would seem a little late to be checking tickets. The train has left the station. Where was the FDIC then.
tsounds like a politics to me. The government caused the economic collapse with the Community reinvestment act forcing banks to make subprime loans and now seeks to blame others.
Our forefathers came here from Europe and set up constitutional protections against oppressive criminal prosecution ( preliminary hearing, arraingment, indictment, etc). They never dreamed of something like the Democrats/Obama that now uses the civil justice system to punish critics and deflect blame.
You people are idiots.
I don't know if McMahon deserves this or not but I do know there are much bigger players that had a more devistating impact on the colapse. They all work in NYC and have alot of juice. So it would seem that the FDIC has found someone with enough name recognition, to generate headlines, but not enough juice to make them fear for their jobs.
Only problem here is the they are going after REPUBLICAN bankers, not the scum Democrats. where is the lawsuit against OBAMAS cabinet that worked on those failed banks??? This is just BS another political move by an administration hell bent on destroying this country.....
FDIC should have been monitoring some of these big banks that they insure. They should also hold themselves responsible.
robber barons are people too now so just remember they are our friends.. Cant we all just get along!!?????
good idea sharky, but can that wait until after they've paid back the money?
Line them up against a wall and open fire.