FDIC Must Take New Look at Banker Ban, Supreme Court Says (1)

The US Supreme Court temporarily revived an appeal of a bank executive banned from the industry for life and fined $125,000 for engaging in unsafe and unsound lending practices.

The Justices said on Monday that the US Court of Appeals for the Sixth Circuit went too far in upholding action by the Federal Deposit Insurance Corporation against the Michigan banker.

It’s a “simple but fundamental rule of administrative law” that reviewing courts must judge the propriety of an agency’s action based “solely on the grounds invoked by the agency,” the justices said in an unsigned opinion. By deciding the case ...