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Lincoln Savings & Loan Association v. Wall

United States District Court for the District of Columbia

743 F. Supp. 901 (1990)

Facts

Lincoln Savings & Loan Association (Lincoln) (plaintiff) was a financial institution that engaged in widespread fraud and misconduct during an era of deregulation. None of Lincoln’s employees in the accounting or legal departments took actions to prevent the misconduct, nor did they comply with regulators who attempted to oversee Lincoln’s actions. Eventually, Lincoln became insolvent. Bank regulators took control of Lincoln, and its former owners sued to retake control.

Rule of Law

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Issue

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Holding and Reasoning (Sporkin, J.)

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A "yes" or "no" answer to the question framed in the issue section;
A summary of the majority or plurality opinion, using the CREAC method; and
The procedural disposition (e.g., reversed and remanded, affirmed, etc.).

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