Builders Bank v. Federal Deposit Insurance Corporation

846 F.3d 272 (2017)

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

Builders Bank v. Federal Deposit Insurance Corporation

United States Court of Appeals for the Seventh Circuit
846 F.3d 272 (2017)

Facts

Builders Bank (plaintiff) was a state bank insured by the Federal Deposit Insurance Corporation (FDIC) (defendant). The FDIC conducted an examination of state banks every 12 to 18 months and assigned the bank a rating under the Uniform Financial Institutions Rating System (system) from one to five, with one being the highest. The rating was called a CAMELS rating after the system’s components of capital, asset quality, management, earnings, liquidity, and sensitivity. CAMELS ratings affected how much a bank must pay for deposit insurance. Builders Bank was given a CAMELS rating of four. Builders Bank brought suit in district court under the Administrative Procedures Act, arguing that its rating should have been three and that the lower rating was arbitrary and capricious. The FDIC argued that the CAMELS rating was unreviewable because it had the discretion to set appropriate levels of capital. Builders Bank insisted it took the FDIC’s capital requirements as given and only sought to challenge the application of the other five CAMELS factors. The district court ruled that the assignment of ratings is committed to agency discretion. The district court dismissed the suit for lack of jurisdiction under U.S.C. § 701(a)(2), which prevented a review of matters committed to agency discretion by law.

Rule of Law

Issue

Holding and Reasoning (Easterbrook, 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 734,000 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 734,000 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 734,000 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