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BANKERS ASSOCIATIONS FILE SUPREME COURT BRIEF TO PROTECT DUE PROCESS RIGHTS

 BANKERS ASSOCIATIONS FILE SUPREME COURT BRIEF
 TO PROTECT DUE PROCESS RIGHTS
 WASHINGTON, Feb. 10 /PRNewswire/ -- Troubled financial institutions have the same constitutional right to due process as any other financial institution, according to a joint amicus curiae brief filed in the U.S. Supreme Court by the American Bankers Association and the Independent Bankers Association of America and the National Council of Community Bankers.
 Under provisions contained in the 1989 Financial Institutions Reform, Recovery and Enforcement Act, known as FIRREA, troubled financial institutions are entitled to judicial review "on the merits" of decisions by regulatory agencies to appoint a conservator.
 However, a decision by the 10th Circuit Court of Appeals limited that judicial review to only those parts of agency's administrative record designated by the agency as relevant to its consideration prior to the appointment of the conservator. The decision thereby precluded the introduction of any evidence by a financial institution at trial in district court.
 In their brief, the associations told the Supreme Court that this decision is contrary to the statutory language and violated the institution's constitutional right to due process.
 "While they are heavily regulated both by federal and state authorities, commercial banks remain privately owned and operated businesses, just as surely as any restaurant or gas station," the associations said in the brief. "As private businesses, banks, their managements and their owners have liberty and property interests at stake that are as deserving of constitutional protection against unchecked government action as would be the interests of any other citizen."
 While the court case applies directly to the seizure of savings and loan institutions, ABA and IBAA said they have a distinct interest in protecting their own due process rights for the future.
 "This Court has held that the due process of the Fifth Amendment requires that persons deprived or to be deprived of a significant property interest must be afforded a meaningful opportunity to be heard on the matter at a meaningful time," according to the brief.
 The trade associations told the Supreme Court that the 10th Circuit's decision deprives the petitioner of that right, while a ruling by the 1st Circuit supported that right. The brief asked the Court to adopt the 1st Circuit's approach to ensure that financial institutions' constitutional right to due process is preserved.
 The American Bankers Association and the Independent Bankers Association of America are national trade associations of the commercial banking industry. Together their memberships comprise almost all of the nation's commercial banks. The National Council of Community Bankers is a trade association representing 350 savings institutions.
 -0- 2/10/92
 /CONTACT: Diane Casey of the Independent Bankers Association of America, 202-659-8111; Virginia Dean of the American Bankers Association, 202-663-7501; or Charlotte J. LeGates of the National Council of Community Bankers, 202-857-3145/ CO: American Bankers Association; Independent Bankers Association
 of America; National Council of Community Bankers ST: District of Columbia IN: FIN SU:


DC-MH -- DC030 -- 8462 02/10/92 16:38 EST
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Date:Feb 10, 1992
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