Broadway Bank Illinois Bank Crisis and Officer Lawsuits

The Broadway Bank crisis led to a series of officer lawsuits, with several high-ranking officials facing allegations of misconduct.

One of the most notable lawsuits was filed against James G. Ryan, the bank's former chairman and CEO. Ryan was accused of making false statements to investors and regulators.

The bank's financial struggles were attributed to a combination of factors, including a decline in commercial lending and a significant increase in bad loans.

Broadway Bank is a community bank with a long history in Illinois, dating back to 1887.

The bank has a strong presence in the community, with multiple locations across the state.

Its main office is located in Alton, Illinois.

Broadway Bank offers a range of personal and business banking services, including checking and savings accounts, loans, and credit cards.

The bank also provides online banking and mobile banking services for its customers.

Broadway Bank has received several awards and recognitions for its community involvement and financial performance.

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Broadway Bank was closed by the Illinois Department of Financial and Professional Regulation on April 23, 2010, and the FDIC was named Receiver.

The FDIC as Receiver for Broadway Bank took all actions necessary to terminate the Receivership Estate, publishing a legal notice of intent to terminate the receivership on September 30, 2021, and making all required dividend distributions.

The Receiver was discharged and the Receivership Estate was terminated on July 1, 2022, effectively ending its existence as a legal entity.

The FDIC estimates that the losses to the Federal Deposit Insurance Fund due to Broadway's failure will approach $400 million.

The FDIC sued the former directors and two former officers of Broadway Bank, alleging that they embarked on a "reckless" strategy of rapidly growing the bank's assets by approving high-risk loans without regard for proper underwriting and credit administration practices.

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The FDIC has filed a lawsuit against the former directors and officers of Broadway Bank in Chicago, Illinois. The bank was placed into receivership on April 23, 2010, and the FDIC estimates losses to the Federal Deposit Insurance Fund will approach $400 million.

The lawsuit alleges that the former directors and officers embarked on a "reckless" strategy of rapidly growing the bank's assets by approving high-risk loans without proper underwriting and credit administration practices. This strategy put the bank at risk, especially since many of the loans were for projects outside of Illinois.

The FDIC is seeking to recover over $104 million in losses from 17 CRE and ADC loans. The agency is also seeking to recover losses from two specific loans that were approved immediately after regulators warned the board about the risks of CRE lending.

The timing of this lawsuit is interesting, as most of the FDIC's lawsuits have been filed closer to the expiration of the three-year limitations period under FIRREA. This suggests that the FDIC may have become more efficient in investigating possible D&O claims.

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Family Bank, a small community bank, is in trouble due to a significant decline in deposits. Its deposits have fallen by 20% in the past year, making it difficult for the bank to maintain liquidity.

The bank's management has been trying to recover by offering more competitive interest rates, but it's not enough to stem the tide of withdrawals. This has led to a significant increase in the bank's non-performing loans.

The bank's assets have been frozen, making it difficult for it to conduct business as usual. This has resulted in a loss of trust among its customers, who are now withdrawing their funds at an alarming rate.

The bank's management has been working to resolve the issue, but it's a complex problem that requires a multi-faceted solution. The bank's future is uncertain, and it's unclear if it will be able to recover from this crisis.