Three years and 12 lawsuits later, this engagement was successfully completed. During the next seven years, the collapse of the energy and real estate sectors of the economy caused the failure of almost every major bank and savings and loan in Texas. Civil and criminal investigations were conducted by the SEC, FBI, FDIC, and Comptroller of the Currency. In addition to Penn Square, we represented the officers and directors of MCorp, First Republic, First National Bank of Midland, Commonwealth Savings, and University Savings.
Litigation arising from the Texas banking debacle continues.
Businesses unable to repay their loans sometimes sue their bankers alleging improper conduct in connection with a loan. Our attorneys have litigated scores of these cases. For example, our Washington office represented a local bank in a series of cases involving defaulted loans. The bank brought collection actions and the defendants responded with a raft of lender liability claims. We successfully defended against these claims, obtaining summary judgment or consent judgments on most of them.