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39 UCLA L. Rev. 1703 (1991-1992)
Bank Director Liability under FIRREA: A New Defense for Directors and Officers of Insolvent Depository Institutions - or a Tighter Noose

handle is hein.journals/uclalr39 and id is 1717 raw text is: COMMENTS BANK DIRECTOR LIABILITY UNDER FIRREA: A NEW DEFENSE FOR DIRECTORS AND OFFICERS OF INSOLVENT DEPOSITORY INSTITUTIONS-OR A TIGHTER NOOSE? David B. Fischer* INTRODUCTION By the autumn of 1991, America's thrift and commercial bank- ing industries' were deeply mired in a severe crisis reminiscent of * Third year student, UCLA School of Law, Chief Article Editor, UCLA Law Review, volume 40. I am indebted to David D. Stitz, an Encino attorney, and to Prof. Steven Freeman, of counsel to Mr. Stitz, for having suggested this topic to me during the summer that I clerked for them. As a matter of formal disclosure, during that period they defended an officer who was being sued by the FDIC, and I participated in researching aspects of that defense. However, my research of this particular topic was conducted independently, and I drew my own conclusions. I also acknowledge the co- operation of James R. Holbrook, a Salt Lake City attorney who participated in the Canfield defense team. Having already formulated my conclusions before communicat- ing with Mr. Holbrook, I subsequently sought his assistance in obtaining public court documents that had been filed by the FDIC and by the Canfield defense team respec- tively. Prof. William A. Klein of UCLA School of Law served as my academic advisor for this project and made many important and substantial suggestions for which I am deeply grateful. Prof. Richard Abel introduced me to the interrelationship of legal scholarship and sociology. My wife, Prof. Linda Yellin of California State University at Northridge and of Pierce College, reviewed my sociological research and offered valua- ble suggestions. Joe Ryan, Genie Gifford, Jeanne Dennis, Gary Gleb and Sonny Kahng, my editors, made important recommendations that significantly improved the text's clarity and cohesion. Finally, I thank my daughters Yael, Kineret and Ayelet- who simply left me alone for two months. This Comment is dedicated to Prof. Christine A. Littleton of the UCLA School of Law. It does not necessarily reflect her views. 1. For a discussion regarding the historic differences between thrifts and commer- cial banks, see C. GOLEMBE & D. HOLLAND, FEDERAL REGULATION OF BANKING, 1986-87, at 15-23 (1986); E. SYMONS, JR. & J. WHITE, BANKING LAW 49-57 (1991). 1703