Builders Bank V. FDIC Update: NCUA Pulls The Rug Out From Under FDIC

On October 17, 2017, Pryor Cashman requested leave from an Illinois federal court to file an unopposed motion on behalf of the New York League of Independent Bankers ("NYLIB") to bring supplemental authority supporting NYLIB's September 2017 amicus brief to the court's attention. 

The case, Builders Bank v. FDIC, involves a novel question of law – whether the federal financial regulatory agencies' so-called "CAMELS" ratings, which assess financial institutions' capital adequacy, asset quality, management, earnings, liquidity, and sensitivity to market risk, are reviewable by the federal courts under the Administrative Procedure Act ("APA"). The FDIC's position, expressed in its July 2017 comments to its intra-agency appeals guidelines, is that its decisions on CAMELS ratings are "not appealable" to the federal courts under the APA – even if a financial institution has unsuccessfully appealed its component or composite CAMELS ratings through the FDIC's intra-agency