Federal Deposit Insurance Corp. v. Belcher, No. 19-31023 (5th Cir. 2020)Annotate this Case
This action is one of many related to the collapse of First NBC Bank of New Orleans. The FDIC filed an action in the district court seeking to enforce an administrative subpoena that ordered defendant to submit to a deposition. The district court granted the motion to enforce the subpoena and defendant appealed. In the interim, the district court denied defendant's request for a stay pending the outcome of this appeal. Defendant then sat for the deposition.
The Fifth Circuit vacated the district court's judgment enforcing the FDIC's subpoena and remanded for further proceedings. The court held that the district court erred by holding that the FDIC, in its capacity as the Bank's receiver, was "the appropriate Federal functional regulator" in this case, entitling it to receive otherwise confidential and privileged documents from the Public Company Accounting Oversight Board (PCAOB). Rather, the FDIC was not "the appropriate Federal functional regulator" in this case, and the PCAOB lacked the authority under 15 U.S.C. 7215(b)(5)(B) to share transcripts of defendant's deposition testimony before it with the FDIC.