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FDIC Enforcement Decisions and Orders |
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FDIC dismissed proceedings against Respondent, a former bank director who had resigned his position the day before being served with a Notice of Removal. FDIC dismissed the proceedings because the United States Court of Appeals held in an unrelated case that Section 8(e) of the Federal Deposit Insurance Act does not authorize the removal of a director who resigns before being served with Notice of Removal proceedings.
[.1] Practice and ProcedureInterlocutory AppealsNew Law
[.2] Prohibition, Removal, or SuspensionDefensesResignation Before Notice
In the Matter of
On November 17, 1988, the administrative law judge assigned to this case denied Respondent's motion to dismiss this proceeding. Respondent argued the Federal Deposit Insurance Corporation ("FDIC") lacked jurisdiction to issue an order to prohibit his future participation in the affairs of * * * Bank and other federally insured financial institutions because he resigned his position at * * * Bank on August 9, 1988, one day prior to the issuance of the notice that the FDIC intended to seek his removal.
[.1] Pursuant to section 308.12(e) of the FDIC Rules and Regulations, 12 C.F.R. §308.12(e), the Board considers interlocutory appeals only upon grant of special permission. Interlocutory review is appropriate with regard to Mr. * * *'s motion because the Stoddard decision establishes new law limiting the Board's jurisdiction under section 8(e) of the Federal Deposit Insurance Act, 12 U.S.C. §1818(e).
[.2] Although the Board and the Comptroller of the Currency, which operates under the same provision as to National bank officers and directors, had consistently held that the resignation of a bank officer or director prior to the issuance of a section 8(e) notice does not affect the agency's authority to issue an order of prohibition, the D.C. Circuit has ruled otherwise in Stoddard.
In the Matter of |
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Last Updated 6/6/2003 | legal@fdic.gov |