Fletcher Village Condominium Ass'n v. Federal Deposit Insurance

MEMORANDUM AND ORDER ON DEFENDANT’S MOTION TO DISMISS OR FOR SUMMARY JUDGMENT

STEARNS, District Judge.

Plaintiff condominium associations brought this lawsuit against the Federal Deposit Insurance Corporation (“FDIC”) in its capacity as receiver of the defunct Boston Trade Bank (“BTB”) and in its corporate capacity as an insurer of the bank’s deposits. Plaintiffs allege that BTB, in disregard of oral instructions, caused money entrusted for the purchase of U.S. Treasury bills to be deposited instead into the plaintiffs’ regular checking accounts. At the time BTB became insolvent, these accounts…