From our private database of 37,500+ case briefs...
Board of Governors of the Federal Reserve System v. First Lincolnwood Corp.
United States Supreme Court
439 U.S. 234 (1978)
Under § 3(a) of the Bank Holding Company Act of 1956, prior approval by the Board of Governors of the Federal Reserve System (the board) (defendant) was required for any company acquiring control of a bank. The board was not permitted to approve any transactions that would create a banking monopoly. The board was required to disapprove any transaction in which the anticompetitive effects were not clearly outweighed by the beneficial effects to the community. First National Bank of Lincolnwood, Illinois (the bank) was controlled by four individuals. The four individuals sought to restructure their ownership interests, so they created First Lincolnwood Corporation (plaintiff) to serve as a bank holding company for the bank. Both the Federal Reserve Bank of Chicago and the United States Comptroller of the Currency recommended approval of First Lincolnwood’s proposal. However, the staff of the board then reviewed the proposed transaction, and it concluded that the capital position of the bank was inadequate and that financing arrangements should be made more definite. The board concurred with the staff’s conclusions. The board found that the bank lacked adequate financial flexibility based on its debt structure. The board concluded that approval of the proposed transaction was not in the public interest because the initial debt structure of the holding company could result in the weakening of the bank’s financial condition, so it denied First Lincolnwood’s proposal. First Lincolnwood sued the board. The court of appeals set aside the board’s denial. The board appealed.
Rule of Law
Holding and Reasoning (Marshall, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 631,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.Unlock this case briefRead our student testimonials
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.Learn about our approachRead more about Quimbee
Here's why 631,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 37,500 briefs, keyed to 984 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.