FDIC Suit Seeks Results of Internal S&L Probe by Baker Botts
A lawsuit filed by the Federal Deposit Insurance Corp. seeks the results of an internal probe conducted by Baker Botts of a closed savings and loan.
A bankruptcy trustee contends it holds the privilege to findings by the law firm and accounting firm Ernst & Young, the National Law Journal reports. The law and accounting firms were hired to investigate the S&L, Franklin Bank, after one of the lender’s employees alleged accounting fraud and misconduct.
The suit, filed in federal court in Houston, claims the FDIC is entitled to the information as a receiver because it stands in the shoes of Franklin Bank, and it needs to determine whether former bank executives are liable for losses, according to the story. The FDIC also argues that the privilege was waived because of a PowerPoint presentation by a Baker Botts partner made to the FDIC, S&L directors and Texas regulators.
