Board of Governors of the Federal Reserve System v. MCorp Financial, Inc.

502 U.S. 32 (1991)

From our private database of 45,900+ case briefs, written and edited by humans—never with AI.

Board of Governors of the Federal Reserve System v. MCorp Financial, Inc.

United States Supreme Court
502 U.S. 32 (1991)

  • Written by Robert Cane, JD

Facts

Under the Financial Institutions Supervisory Act of 1966, the Board of Governors of the Federal Reserve System (the board) (defendant) could institute administrative proceedings against financial institutions and issue cease-and-desist orders. MCorp Financial, Incorporated (MCorp) (plaintiff) was a bank holding company. In 1988, the board instituted an administrative proceeding against MCorp pursuant to the board’s source-of-strength regulation. In 1989, the board instituted a second administrative proceeding against MCorp pursuant to § 23A of the Federal Reserve Act. Subsequently, MCorp filed voluntary bankruptcy petitions. Next, MCorp sued the board in the district court, arguing that the court ought to enjoin the two ongoing administrative proceedings because the filing of the bankruptcy petitions triggered an automatic stay as provided by the Bankruptcy Code. By this point, the board had issued only notices of charges and of hearing with respect to the two administrative proceedings and had not entered any orders or made any final decisions. Regardless, the district court entered a preliminary injunction enjoining the two proceedings. The board appealed to the court of appeals. The court of appeals held that the § 23A proceeding could go forward and that the source-of-strength proceeding must be enjoined because it exceeded the board’s statutory authority. The board appealed to the United States Supreme Court.

Rule of Law

Issue

Holding and Reasoning (Stevens, J.)

What to do next…

  1. 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 741,000 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
  2. 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 741,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 45,900 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.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 741,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 45,900 briefs - keyed to 984 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership