Wednesday, December 26, 2012

Tenth Circuit -- Frontier State Bank Oklahoma v. FDIC


Statute bars Article III review of FDIC minimum capital requirements, as there are no discoverable standards to assess them.

Board & ALJ skepticism as to revenue model was reasonable.

FDIC's requirement that bank both increase capital and decrease risk was reasonable.

Agency decisions on liquidity reasonable, as the substantial evidence supporting the agency's conclusions can be a macro assessment of total risk as opposed to assessment of individual strategies.

Given findings on capital, liquidity and risk, per se substantial evidence for mismanagement.

Frontier State Bank Oklahoma v. FDIC
Compiled by D.E. Frydrychowski, who is, not incidentally, not giving you legal advice.

Category tags above are sporadically maintained Do not rely. Do not rely. Do not rely.

Author's SSRN page here.