A federal judge has ruled that the Federal Deposit Insurance Corp. need not refund $200 million collected from thrifts in late 1996.

Rejecting a claim by America's Community Bankers, U.S. District Court Judge Louis F. Oberdorfer ruled that the FDIC was within its rights when it collected $200 million from the Savings Association Insurance Fund's nearly 2,000 members. The money was used to service bonds floated in the late 1980s to recapitalize the predecessor insurance fund, the Federal Savings and Loan Insurance Corp.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.