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FDIC Goes After Failed Banks

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In an effort to recoup losses, the FDIC is targeting executives of failed banks, filing lawsuits accusing them of fraud related to real estate development, reports the LAT. One suit, "accuses four executives of Pasadena's defunct IndyMac Bank of negligence in granting construction and development loans that the suit says were unlikely to be repaid." Critics of the FDIC's actions say it was impossible for anyone to predict the real estate crash. The government's behavior follows moves after the savings and loan meltdown, during "which the FDIC recovered $5.1 billion from former insiders at failed banks and savings and loans..." [LAT]