Take Two: State AGs Target The FDIC's Final Rule Reaffirming Valid-When-Made Doctrine

Last week, the state attorneys general of seven states and the District of Columbia filed suit against the Federal Deposit Insurance Corporation (FDIC) challenging the FDIC's final rule reaffirming the valid-when-made doctrine for loans originated by state-chartered federally insured banks. The lawsuit was expected after three state attorneys general filed suit against the OCC challenging its final valid-when-made rule. (For analysis of the OCC challenge, see our Client Alert.)

The complaint challenging the FDIC's final rule repeats almost verbatim most of the allegations in the complaint challenging the OCC's final rule. As with the OCC's final rule, the state AGs seek to set aside the FDIC's final rule on both substantive and procedural grounds, including that: