HOUSTON - The Federal Deposit Insurance Corp. could decide Dec. 14 whether to settle legal claims that it wrongfully seized bankrupt First City Bancorporation of Texas last year, the bank said.
In a statement, the bank said the FDIC board will be asked at its next meeting to authorize a settlement, though a spokesman declined to detail what the terms would be. First City has said that if negotiations fail, it will probably proceed with a lawsuit, filed in September, alleging misconduct by the agency.
An FDIC spokesman could not be reached for comment. However, no settlement could take effect without approval by the First City board and the federal bankruptcy court in Dallas.
First City filed a motion in bankruptcy court Monday seeking to extend the period in which it has the exclusive right to file a plan of reorganization. its current exclusivity period ends Dec. 17.