6th Circ. Says FDIC Can't Recover $765M In AmFin Dispute

Law360, New York (September 14, 2012, 8:24 PM EDT) -- The Federal Deposit Insurance Corp. was dashed in its effort to recover $765 million from AmFin Financial Corp. when the Sixth Circuit on Friday affirmed a ruling that the bankrupt company did not commit to providing capital to prop up its commercial banking unit.

The appeals court rejected the FDIC's take on how to read a 2008 cease-and-desist order from the Office of Thrift Supervision to AmFin and its subsidiary AmTrust Bank after they failed to maintain minimum capital requirements. The Sixth Circuit agreed with the...
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