A top Federal Deposit Insurance Corp. official said former managers can gain access to failed-bank documents "where appropriate" but not in a way that imperils customer privacy.
In a letter dated Jan. 25, FDIC General Counsel Michael Krimminger said the agency's disapproval of officers and directors — afraid of FDIC lawsuits — removing and copying records before their banks' closure "is not new policy." Numerous lawsuits have centered on FDIC efforts to reclaim such records.
"The FDIC is obligated to comply with all federal laws that protect the confidentiality of bank records and to maintain an accurate and complete set of records both for the acquiring institution and for itself to effectively operate the receivership," Krimminger wrote to the American Association of Bank Directors. The industry group released his letter Tuesday.
At issue are the scores of lawsuits the FDIC considers against former managers for their roles in a failure. Krimminger said the agency recognizes the interests of those seeking documents but that parties must follow a proper course to obtain them.
"We have been and remain willing to accommodate these interests where appropriate, provided that any information furnished … is made subject to the terms of a suitable confidentiality agreement or protective order," he wrote.
