FDIC Gets Dismissal of First Republic Bank Employees’ Asset Suit

The Federal Deposit Insurance Corp., in its capacity as receiver for First Republic Bank, won the dismissal of a suit filed by the bank’s former employees seeking access to assets from the bank, which failed in May 2023.

The Financial Institutions Reform, Recovery, and Enforcement Act bars the employees’ suit, seeking declaratory and equitable relief, because it seeks to restrain or affect the FDIC-R from fulfilling its receivership duties, Judge Haywood S. Gilliam Jr. of the US District Court for the Northern District of California said in a July 12 order to dismiss the case with prejudice.

The California ...