FDIC sues underwriter for conducting property flips

The FDIC, as receiver for an Illinois bank, sued an underwriter, alleging the underwriter played a role in conducting property flips on four Chicago properties without the bank’s knowledge. It filed claims for, among other things, negligent supervision, negligent misrepresentation and vicarious liability. Read on for what the U.S. District Court for the Northern District of Illinois had to say when the case came to it on the underwriter’s motion to dismiss certain claims against it.