Lending Sub-Prime and Advising on Financial Investments from a D & O Insurance Perspective

摘要

The collapse of several financial institutions worldwide is fast developing into a number of legal proceedings, brought by desperate and angry investors, customers and others, who believe that this tremendous crisis is the result of a failure on the part of banks' directors and officers to observe and comply with what a reasonable man, acting in the same situation, would have done. In other words, it is believed that serious breaches of the duty of care, alongside other (duties) and lack of regulation and supervision, finally resulted in global recession. On the other hand and closely connected with the issue, lies the alarm for directors' and officers' (D & O) liability insurance carriers who, should the above idea mature into civil liabilities, may have no option but to financially respond by way of indemnity and make good the third-party losses.