DALLAS -- Insurance of 26 former executives of the failed MBank Dallas paid $39.2 million to settle regulators' potential claims stemming from the bank's 1989 collapse, according to a published report.
The Dallas Morning News reported that the payment is the largest on behalf of officers and directors of a failed bank.
Officials with the Federal Deposit Insurance Corp. told the newspaper that three insurance companies representing the officers and directors made the payment earlier this week.
The settlement is not an admission of wrongdoing, liability, or fault, but it releases the former bank executives from potential legal action brought by the FDIC and frees the federal agency from possible counterclaims, the newspaper said.
Bank regulators seized MBank Dallas and 19 other MCorp banks in March 1989 because of troubled assets.
Earlier this year, former officials of the failed First Republic-Bank Corp paid $23 million to the FDIC.