5th Circuit ruling throws major fly in MCorp ointment

Article Abstract:

A 5th US Circuit of Appeals ruling in another case involving the Federal Deposit Insurance Corp (FDIC) and another failed banking company could be bad news for MCorp in its upcoming case charging the FDIC with violating the National Bank Act. In its Feb 27, 1992 decision in Texas American Bancshares Inc v Clarke, the court reversed a lower court opinion that by paying TAB subsidiaries less than outside creditors the FDIC violated the act. MCorp's case, scheduled to begin April 14, also revolves around alleged inequitable payments to subsidiaries after its banks were closed by the FDIC.

author: Donovan, Karen
Bank holding companies, United States. Federal Deposit Insurance Corp.

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Courts prop up receivers' powers under bailout law

Article Abstract:

The 3d Circuit held in Gross v Bell Savings Bank that FIRREA blocks injunctions against the Federal Deposit Insurance Corp and the Resolution Corp (RTC) in their management of the savings and loan bailout situation. Specifically, an injunction requiring the RTC to hand over $500,000 from a failed thrift to a pension fund was reversed. In RTC v Landmark Land Co of Carolina, Inc., an injunction against the RTC that had kept the agency from changing bank management and voting stock in the subsidiaries was reversed. Section 1821(j) of FIRREA is the anti-injunction provision.

author: Donovan, Karen
Judicial review of administrative acts, United States. Resolution Trust Corp.

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Lawyer after fee throws a wrench in USX arbitration

Article Abstract:

Houston trial lawyer Tom Alexander is still trying to collect his fee for representing Energy Buyers Service Corp in a breach of contract suit against USX Corp. Alexander was eliminated as a plaintiffs' attorney before the case went to binding arbitration, but claims that he is still entitled to a portion of the arbitration award. A USX attempt to overturn the arbitration award is now tangled up with Alexander's motion to uphold it so he can get his fee.

author: Donovan, Karen
Crude petroleum and natural gas, Petroleum refining, Commercial arbitration, Breach of contract, Marathon Oil Corp.

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subjects list: Cases, Powers and duties, Bank failures
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