The Resolution Trust Corp. (RTC) sued the directors of the Commonwealth Savings Association seeking to recover from

Question:

The Resolution Trust Corp. (RTC) sued the directors of the Commonwealth Savings Association seeking to recover from them personally $200 million that the bank lost in bad real estate loans. The directors approved the loans after state and federal regulatory agencies had issued reports criticizing the bank's loan practices. The directors failed to implement policies and procedures to prevent problems with the loan and failed to monitor loan officers adequately. There was no evidence that the directors knowingly committed illegal acts or acts outside their authority. Under Texas law, the RTC could recover for the directors' negligence only if their acts were ultra vires. Were these acts ultra vires?
Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...