An Arkansas banker is suing the Office of the Comptroller of the Currency for breach of contract for blocking his plan to buy subprime loans made to low-income and minority borrowers.

Damian Sinclair owns the controlling interest in the $30 million-asset Sinclair National Bank in Gravette, Ark., which he purchased for $2.7 million last Christmas eve. In twin complaints filed last month in U.S. District Court for the District of Columbia and the U.S. Court of Federal Claims, Mr. Sinclair alleged that after approving his business plan in March, OCC officials began a systematic campaign of regulatory harassment that has prevented him from implementing it.

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