Advisory Director Liability

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Question:

How much liability do advisory directors have compared to the potential liability of directors?

Answer:

It depends on what the advisory directors actually do. Read what the OCC says about them on pages 5-6 in "The Director's Book." The FDIC sued a number of advisory directors in the 80s and 90s during the banking crisis over specific bank failures, as they deemed them acting as actual directors and had overstepped the line of an advisory director.

First published on BankersOnline.com 6/16/08