The U.S. Court of Appeals for the D.C. Circuit ruled this week that the Office of Thrift Supervision was justified in issuing a rule that lets newly converted thrifts tighten the limit on the amount of stock one person can own.

Activist shareholder Joseph Stilwell had challenged a rule by the OTS that would allow subsidiaries of mutual holding companies to limit their minority stock to 10% of the subsidiary's total minority stock. Stilwell had filed a petition in August 2008 asking a federal court to set aside the rule, arguing it was "arbitrary," "capricious" and "unlawful."

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