A reader sent me a copy of yesterday's decision of Federal District Court Judge Amy Berman Jackson in the United Western Bank lawsuit against the OCC that sought to set aside the January 2011 decision of the OTS to appoint the FDIC as receiver for the bank. To make a long story short, Judge Jackson ruled in favor of the OCC and refused to overturn the decision of the OTS (now defunct and subsumed by the OCC). I haven't had an opportunity to read the opinion or carefully consider it, and will not have an opportunity to do so until this weekend.
My initial reaction is that this is no surprise. From a couple of telephone calls I received today from other banking law attorneys who've been following the case, it appears to be no surprise to most banking attorneys. As I said when I first wrote about this case two years ago, the legal deck was stacked against the plaintiff from the start. As I also noted the following year, "no matter what my heart tells me, my head tells me not to bet against the OCC."
It may be disappointing to many that David failed to slay Goliath, but given the high legal bar to jump over, you'd need the helping hand of God to clear it, and, in this case, divine intervention was not forthcoming.