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Lincoln Savings & Loan Association v. Wall
United States District Court for the District of Columbia
743 F. Supp. 901 (1990)
- Written by Heather Whittemore, JD
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
Issue
Holding and Reasoning (Sporkin, J.)
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