Landry v. Fdi

204 F.3d 1125 (2000)

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Nature of the Case

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Facts

First Guaranty, a bank, was in serious financial trouble. The FDIC issued a capital directive requiring it to obtain a $ 4.7 million infusion of capital by January 1, 1991. First, Guaranty failed to comply. The FDIC told the Bank's board of directors that it would seek to terminate the Bank's deposit insurance. The Bank got a reprieve, and again it failed to comply. P, the Senior Vice President, Chief Financial Officer, and Cashier attempted a number of different avenues to raise the needed capital. D found that P's executed enough of their plans to cause the Bank to lose substantial sums of money in the form of promotional expenses and other unwise or illegal banking activities without informing the directors that P’s plan was designed to enrich the incorporators while providing little or no benefit to the Bank itself. D informed P that it would seek to have him removed from Bank and forbidden to participate as an officer at any other FDIC insured bank. D assigned an administrative law judge who heard the case and recommended removal of P. D approved of the decision, and P appealed. In part, P argued that D’s appointment of administrative law judges (ALJ) violated the Appointments Clause of the Constitution (U.S. Const., Art. II, § 2, cl. 2.).