Page:United States Reports 502 OCT. TERM 1991.pdf/190

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OCTOBER TERM, 1991 Syllabus

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM v. MCORP FINANCIAL, INC., et al. certiorari to the united states court of appeals for the fifth circuit No. 90–913. Argued October 7, 1991—Decided December 3, 1991* After MCorp, a bank holding company, filed voluntary bankruptcy petitions, it initiated an adversary proceeding in the Bankruptcy Court against the Board of Governors of the Federal Reserve System (Board) seeking to enjoin the prosecution of two pending administrative proceedings, one charging MCorp with a violation of the Board’s “source of strength” regulation and the other alleging a violation of § 23A of the Federal Reserve Act. The District Court transferred the adversary proceeding to its own docket, ruled that it had jurisdiction to enjoin the Board from prosecuting both administrative proceedings, and entered a preliminary injunction halting those proceedings. The Court of Appeals vacated the injunction barring the § 23A proceeding, reasoning that the plain language of the judicial review provisions of the Financial Institutions Supervisory Act of 1966 (FISA), particularly 12 U. S. C. § 1818(i)(1), deprived the District Court of jurisdiction to enjoin either administrative proceeding. However, the Court of Appeals also interpreted Leedom v. Kyne, 358 U. S. 184, to authorize an injunction against any administrative proceeding conducted without statutory authorization, ruled that the Board’s promulgation and enforcement of its source of strength regulation exceeded its statutory authority, and remanded the case with instructions to the District Court to enjoin the Board from enforcing the regulation. Held: The District Court lacked jurisdiction to enjoin either regulatory proceeding. Pp. 37–45. (a) This litigation is controlled by § 1818(i)(1)’s plain, preclusive language: “[N]o court shall have jurisdiction to affect by injunction. . . the issuance or enforcement of any [Board] notice or order.” That language is not qualified or superseded by the Bankruptcy Code’s automatic stay Federal Reserve System, also on certiorari to the same court.
 * Together with No. 90–914, MCorp et al. v. Board of Governors of the