FDIC CAPITAL DIRECTIVE PROCEDURES - THE UNACCEPTABLE RISK OF BIAS

The author analyzes how the FDIC's capital directive procedures are pr esently being implemented. He discusses the Fifth Circuit's decision i n FDIC v. Bank of Coushatta, which held that the FDICs capital directi ve procedures are constitutionally sound and not subject to judicial r eview under the Administrative Procedure Act. The author argues that t he capital directive procedures are not constitutionally, sound becaus e they threaten a substantial property interest but afford no protecti on against the potential bias of the decisionmaker.