Federal Judge Says FDIC Lacks Standing In Lawsuit Against Bankers in New Mexico

A federal judge March 3 dismissed a Federal Deposit Insurance Corp. lawsuit against officers and directors of a failed bank, saying the FDIC lacks standing because it failed to allege causation and injury in fact (FDIC v. Dee, D.N.M., 14-cv-00066, 3/3/15).

In a 62-page ruling, Judge James O. Browning of the U.S. District Court for the District of New Mexico said the FDIC’s January 2014 complaint alleged “reckless lending” by bankers at First Community Bank of Taos, N.M.

However, the complaint lacked other critical information, such as what happened to the loans after they were approved, or ...