Courts Have No Power Over FDIC Administrative Cases, Judge Says

The Federal Deposit Insurance Corp. fended off a challenge to a proposed $20.4 million judgment against a Kansas bank after a judge ruled he didn’t have the authority to stop an agency administrative proceeding.

Federal courts can’t grant preliminary injunctions seeking to stop FDIC administrative proceedings, as CBW Bank requested, and they lack the authority to rule on the constitutionality of the agency’s use of administrative law judges, Judge Daniel Crabtree of the US District Court for the District of Kansas said in a Monday decision.

“By statute, Congress explicitly has precluded district court jurisdiction over FDIC enforcement proceedings, ...