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MALLIS v. FEDERAL DEPOSIT INS. CORP.

No. 75 Civ. 909(MP).

407 F.Supp. 7 (1975)

Samuel MALLIS and Franklyn Kupferman, Plaintiffs, v. FEDERAL DEPOSIT INSURANCE CORPORATION et al., Defendants.

United States District Court, S. D. New York.

Supplemental Order October 2, 1975.

Attorney(s) appearing for the Case

Hauser & Rosenbaum, New York City, for plaintiffs by Noel W. Hauser, New York City.

Hughes, Hubbard & Reed, New York City, for defendant (Federal Deposit Insurance Corporation as Receiver of Franklin National Bank) by Robert S. Anderson, New York City.

Sullivan & Cromwell, New York City, for defendant (European-American Bank & Trust Co.) by John L. Warden, New York City.

Charles Leeds, New York City, for defendant (Bankers Trust Co.) by Nathan Silverman, New York City.

MEMORANDUM

POLLACK, District Judge.

Federal Deposit Insurance Corporation (FDIC hereafter) and European American Bank (EA) are successors in interest to an insolvent, Franklin National Bank (FNB).

Plaintiffs, two dentists, borrowed $156,000 from FNB on March 3, 1972, and now claim that the loan (reduced substantially by repayments on account) violated Regulation U (Federal Reserve Regulations, 12 C.F.R. Section 221.1 et seq.) prohibiting loans secured...

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