Board of Governors of the Federal Reserve System of the United States v. Mcorp Financial, Inc., et al. (502 U.S. 32)
U.S. Supreme Court · decided December 3, 1991 · Supreme Court Database (Spaeth)
- Citation
- 502 U.S. 32 · 112 S. Ct. 459
- Decided
- December 3, 1991
- Term
- October Term 1991
- Vote
- 8–0
- Majority author
- Justice Stevens
- Issue area
- Judicial Power
- Disposition
- Reversed
- Outcome
- Petitioning party won
- Ideological direction
- Conservative
Opinion excerpt
Justice Stevens delivered the opinion of the Court. MCorp, a bank holding company, filed voluntary bankruptcy petitions in March 1989. It then initiated an adversary proceeding against the Board of Governors of the Federal Reserve System (Board) seeking to enjoin the prosecution of two administrative proceedings, one charging MCorp with a violation of the Board’s “source of strength” regulation and the other alleging a violation of § 23A of the Federal Reserve Act, as added, 48 Stat. 183, and amended. The District Court enjoined both proceedings, and the Board appealed. The Court of Appeals held that the District Court had no jurisdiction to enjoin the §23A proceeding, but that, under the doctrine set forth in Leedom v. Kyne, 358 U. S. 184 (1958), the District Court had jurisdiction to review the validity of the “source of strength” regulation. The Court of Appeals then ruled that the Board had exceeded its statutory authority in promulgating that regulation. 900 F. 2d 852 (CA5 1990). We granted certiorari, 499 U. S. 904 (1991), to review the entire action but, because we conclude that the District Court lacked jurisdiction to enjoin either regulatory proceeding, we do not reach the merits of MCorp’s challenge to the regulation. H-t In 1984, the Board promulgated a regulation requiring every bank holding company to “serve as a source of financial and managerial strength to…
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