Asset Sale Doesn't Kill FDIC's Receiver Powers, 8th Circ. Says

Law360, New York (February 27, 2013, 7:14 PM EST) -- The Eighth Circuit ruled Wednesday that the Federal Deposit Insurance Corp.'s powers as a receiver for failed banks would be unduly restrained if its protection from injunctive relief did not apply when it sells an asset to a third party.

A three-judge panel clarified the scope of the anti-injunction provisions of the Financial Institutions Reform, Recovery and Enforcement Act in a case involving a defaulted $2.5 million loan to a real estate development company. In its capacity as receiver for the lender, the FDIC sold the...
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