Punishing the Guilty: The Aftermath of Bank Failures - with Rick Osterman (S1:E9)
In this episode of Banking Bad, former FDIC General Counsel Rick Osterman joins John Bovenzi and Tom Vice to explore the legal side of bank failure: who is held accountable, how responsibility is determined, and where the line is drawn between poor judgment, negligence, gross negligence, and fraud. The discussion looks at political pressure, regulatory accountability, recurring early-warning signs, and the responsibilities of bank directors.
Grounded in his FDIC experience, Rick provides his perspective on legal accountability, FDIC investigations and recovery claims, regulatory and criminal coordination, the regulatory “pendulum,” and directors’ duty to be informed and engaged, especially when institutions begin taking greater risks.
Our Guest
Rick Osterman is an international banking advisor for the United States Treasury’s Office of Technical Assistance where he supports foreign countries in development of bank resolution and deposit insurance systems. From January 2019 to December 2025, Rick served as an adjunct professor at George Washington University Law School. He was a consultant for the World Bank from 2017 to 2019.
Previously, Rick served in various executive positions in the Legal Division of the Federal Deposit Insurance Corporation, including Acting General Counsel and Deputy General Counsel. He led the FDIC’s Legal Division’s Litigation and Resolutions Branch from June 2007 to June 2016, providing legal counsel for the agency’s resolution and receivership functions during the 2008 financial crisis.
During his FDIC career Rick also served as Assistant General Counsel for the Receivership Operations and Litigation Section, which included Professional Liability, Financial Crimes and Receivership and Operations Policy. His other experience included work in supervision, deposit insurance, assessments, legislation and appellate litigation. He testified before the U.S. Congress and the U.K. Parliamentary Commission on Banking Standards, represented the agency in the U.S. Courts of Appeals throughout the United States and at numerous industry and professional conferences. He was also the FDIC representative to the Administrative Conference of the United States.
Rick graduated cum laude from the University of Baltimore School of Law where he was a member of the law review. He received a BA in Political Science and Economics from Swarthmore College.
