AmFin Made No Promises To Back Up Bank, Judge Says

Law360, New York (June 8, 2011, 6:11 PM EDT) -- An Ohio federal judge on Monday ruled that AmFin Financial Corp. did not commit to providing capital to prop up its commercial banking unit, dashing the Federal Deposit Insurance Corp.'s push to recover $765 million from the bankrupt company.

The ruling by U.S. District Judge Donald C. Nugent also provides support to AmFin's reorganization plan, which is currently pending in bankruptcy court and was based on a win in the FDIC litigation.

“The FDIC has the ability to appeal. We don't know what they're going to...
To view the full article, register now.