RTC's receivership powers reviewed

Article Abstract:

The 4th Circuit's decision in Landmark Land Co v Resolution Trust Corp (RTC) shields the agency from any judicial review of its dealings with failed financial institutions. The lower court found no statutory basis for the RTC's claim that the agency's receivership powers took precedence over the court's Bankruptcy Code powers to protect a corporate reorganization. The 4th Circuit sided with the RTC and held that FIRREA overrides the Bankruptcy Code, giving the agency complete control over the assets of failed banks. The issues in this broad ruling are sure to come before the courts again.

Exclusive and concurrent legislative powers, Preemption (Legislative power), Judicial review of administrative acts, Receivers (Law)

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Institutions seek clearer liability test

Article Abstract:

The Federal Deposit Insurance Corp's and Resolution Trust Corp's eagerness to sue directors and officers of failed banks is making many qualified people reluctant to serve on bank boards. The agencies could announce that they would stop trying to craft an ordinary negligence standard and just use FIRREA's gross negligence standard. They could also make the business judgment rule which most directors and officers use as a defense more realistic. Even the best-intentioned and qualified directors and officers make occasional mistakes and need not be punished so harshly.

Corporate directors, United States. Federal Deposit Insurance Corp.

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As states adopt interstate banking even before federal law goes into effect, holding companies mull consolidating subsidiaries

Article Abstract:

The Riegle-Neal Interstate Banking Act and other legislative and regulatory developments encourage bank holding companies to consider potential changes. These include consolidating subsidiaries in multiple states into a single bank with interstate branches, taking a decentralized approach, eliminating the holding company, and incorporating thrifts into other operations or keeping them separate. The effects of different state laws and federal attempts to make national bank charters more attractive are discussed.

Banking Institutions, Depository Credit Intermediation, DEPOSITORY INSTITUTIONS, United States, Banking industry, Management, Banks (Finance), Influence, Interstate banking

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