Michael v. Fed. Deposit Ins. Corp.

Record contained sufficient evidence to support FDIC Bd.’s order prohibiting petitioners from participating in affairs of any insured depository based on petitioners’ violations of Federal Reserve regulations and breaches of fiduciary duties arising out of petitioners’ (members of bank’s Board of Director) procurement of loans from said bank in excessive amount in violation of Regulation O and their double pledging of stock certificate as collateral for separate loans. ALJ could properly find that: (1) petitioners had actually voted to approve instant “insider” loan to themselves in their role as Bd. members and had failed to inform other Bd. members of actual loan-to value ratio in said loan; and (2) petitioners had engaged in unsafe banking practice by double pledging stock certificate. Ct. rejected petitioners’ invitation to reweigh credibility determinations made by both ALJ and FDIC.