Sinclair v. Hawke

The Office of the Comptroller of the Currency (the comptroller) (defendant) had comprehensive authority to regulate national banks. Northwest National Bank was distressed. Damian Sinclair (plaintiff) purchased Northwest National Bank with the comptroller’s approval and changed the named to Sinclair National Bank (Sinclair Bank) (plaintiff). Mr. Sinclair was the sole shareholder and the chairman of Sinclair Bank. Mr. Sinclair planned to purchase pools of nonprime loans made to low-income borrowers. After the purchase, the Federal Deposit Insurance Corporation (FDIC) (defendant) sent a letter to the comptroller, which criticized the comptroller for approving the change in ownership despite the FDIC’s negative evaluation of Mr. Sinclair’s business plan. Subsequently, the comptroller took several regulatory actions against Sinclair Bank, culminating in the comptroller declaring Sinclair Bank insolvent and appointing the FDIC as its receiver. Mr. Sinclair and Sinclair Bank sued the comptroller and the FDIC, seeking a temporary restraining order to prevent the FDIC from selling Sinclair Bank’s assets. The district court denied the motion for a temporary restraining order. Consequently, the FDIC sold Sinclair Bank’s assets. Next, Mr. Sinclair filed an amended complaint, individually and as assignee of Sinclair Bank, for money damages. Mr. Sinclair based his amended complaint on several theories, including a Bivens claim, a civil-rights claim, a Racketeer Influenced and Corrupt Organizations Act (RICO) claim, and a claim under 42 U.S.C. §§ 1981 and 1982. The comptroller and the FDIC filed a motion to dismiss the amended complaint, which the district court granted. Mr. Sinclair appealed.