One Valley Bank has given up its challenge to the Federal Deposit Insurance Corp.'s authority to charge banks higher rates on their thrift deposits.
One Valley chairman J. Holmes Morrison said the recently enacted thrift fund capitalization law has made the suit moot by drastically lowering the annual premium on thrift deposits.
"The recent federal deposit insurance legislation both served a vital public policy and significantly reduced an unfair burden placed on One Valley and other Oakar institutions," Mr. Morrison said. "Because we believe that the enactment of this legislation was largely the result of the efforts, tenacity, and foresight of the FDIC, we thought that it was appropriate to dismiss our pending litigation."
The $4.2 billion-asset West Virginia banking company had claimed that Congress abolished the requirement in 1992 that banks pay Savings Association Insurance Fund premiums on deposits they bought from ailing thrifts. Instead, the bank claimed it should pay the lower, Bank Insurance Fund rate.
- Compiled by Jaret Seiberg and Olaf de Senerpont Domis