Larsen v. FDIC/Manager Fund

OPINION

GAMMAGE, Justice.

The issue in this case is one of statutory construction: whether Congress intended a section in the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 1 (“FIRREA”) to give the FDIC power to step in after judgment as receiver for a failed financial institution and assert substantive federal defenses for the first time on appeal. The trial court rendered judgment for Max Larsen, trustee, against American Savings Bank. American Savings appealed, but while the case was on appeal, federal regulators declared the bank in danger of insolvency and ultimately…