WASHINGTON — The Federal Deposit Insurance Corp. has settled its case with a law firm over the appropriate use of failed-bank documents in civil litigation.
The lawsuit, brought by the firm McKenna Long & Aldridge LLP, was one of multiple involving whether bank officers and directors can remove records from failing institutions to help their lawyers build a defense against potential FDIC claims. Lawyers say they deserve access to documents which could exonerate their clients. The agency, meanwhile, has accused former bankers of appropriating customer records they no longer own, causing a security breach.
The terms of the settlement were not disclosed. Yet FDIC officials in the past have indicated they would allow defense teams to access records if both sides agreed on how they were used.
The FDIC settled a similar case in February regarding a Eugene, Ore., holding company, Liberty Financial Group Inc., and its access to documents from a failed subsidiary. A third case, brought by the FDIC against the law firm Bryan Cave LLP, is still pending.
The FDIC and McKenna Long jointly filed a notice Tuesday asking for a dismissal. The case was officially closed on Wednesday.
