Banks: The Good, The Bad, and The Ugly.

Distressed financial institutions will find it very difficult to retain or find viable insurance over the next few years. As most agents who place financial institution (F.I.) business are well aware of, the last few years have been extremely litigious for the F.I. industry. In December of 2010 alone, the FDIC filed 100 suits against the Directors and Officers of troubled banks; that number has already been eclipsed by the 119 lawsuits filed by the FDIC in January of this year. With more than 850 banks on the FDIC's "troubled" bank list, it is no wonder that the FDIC is likely to file hundreds of suits over the course of the next 5 years.

The FDIC has indicated that the existence of D&O insurance will be the starting point for FDIC officials when they begin to evaluate whether or not to file suits against the Directors and Officers of distressed banks. Other characteristics that may land a bank on the FDIC's list of troubled banks include:

This surge in litigation has caused many standard markets to drastically alter terms and conditions upon renewal, or simply non-renew altogether. S.H. Smith & Company has access to all bank insurance markets and over 110 years of combined experience placing distressed banks. Don't get stuck having to scramble at the last minute to get your financial institution account placed; contact us today to learn more about how we can make your life easier and let us show you the S.H. Smith & Company difference.

Massachusetts
Ed McGuire
Senior Vice President
(781) 247-6225

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Executive Vice President
(781) 247-6223

Connecticut
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Executive Vice President
(860) 656-1203

Rhode Island
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Vice President
(860) 656-1268

Minnesota
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Executive Vice President
(651) 414-3861

More than 850 banks are on the FDIC's "troubled" bank list.

For more infromation, read the full article, D&O Insurers Getting Notices For FDIC Claims; Lawsuits Expected to Mushroom.

S.H. Smith & Company is licensed to work in all 50 states and has offices in Connecticut, Maryland, Massachusetts, Minnesota, New Jersey, New York, Ohio, and Rhode Island.