Senior Unsecured Creditors' Committee of First Republic-Bank Corp. v. Federal Deposit Insurance

FITZWATER, District Judge:

In 1988 the Federal Deposit Insurance Corporation (“FDIC”) undertook “the largest bank rescue effort in history,” 1 providing $1 billion in open bank assistance to the flagship bank of the First RepublicBank Corporation (“FRBC”) integrated banking system. The assistance effort proved unsuccessful and the flagship bank failed. FRBC’s other 40 subsidiary banks were also declared insolvent and closed. FRBC and its wholly-owned subsidiary, IFRB Corporation (“IFRB”), thereafter filed voluntary chapter 11 bankruptcy petitions. Three statutory creditors’ committees of these…