Southwest Mississippi Bank v. Federal Deposit Insurance

MEMORANDUM OPINION

WALTER L. NIXON, Jr., District Judge.

This is a suit filed by the plaintiff banks, Southwest Mississippi Bank (SMB) and Bank of McComb (BM) against the defendant, Federal Deposit Insurance Corporation (FDIC), for a declaratory judgment and injunctive relief, seeking review of the FDIC’s decision denying approval of the proposed consolidation or merger of the two named plaintiffs pursuant to the Bank Merger Act of 1966, 12 U.S.C. § 1828(c).

The basis for the disapproval by the FDIC is that the proposed consolidation would substantially lessen competition in violation of the…