Bank officials subject of criminal investigation - KWWL - Eastern Iowa Breaking News, Weather, Closings

Bank officials subject of criminal investigation

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WASHINGTON (AP) -- The federal government has opened criminal investigations into approximately 50 executives and directors of U.S. banks that have collapsed during the financial crisis.  Deputy Inspector General Fred Gibson says the inspector general's office at the Federal Deposit Insurance Corp. has been probing the role of the executives in bank failures around the country.

The criminal investigations are separate from civil lawsuits against some 80 bank executives, employees and directors.  The lawsuits are seeking to recover about $2 billion and were authorized by the FDIC's board.

The FDIC has shut down or seized 311 banks since January 2008 at a cost of around $77 billion. 

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