Garner

This is a consolidated appeal from the district court’s decision to grant a preliminary injunction requested by the Federal Deposit Insurance Corporation freezing Gerald and Joan Garner’s assets and appointing a trustee over those assets. The court imposed the injunction during the pendency of a lawsuit filed by the FDIC against the Gamers. In the underlying suit, the FDIC seeks to recover damages for torts and statutory violations in connection with the Garners’ management of the American Commerce National Bank. The principal legal question we address is whether the FDIC may invoke a preliminary injunction asset freeze in their suit against the Gamers under the Taxpayer Recovery Act absent allegations of fraudulent conduct.

We affirm the grant of the preliminary injunction.

I. FACTS

A. Joan and Gerald Garner’s Appeal

On April 30, 1993, the Office of the Comptroller of the Currency (“OCC”) closed the American Commerce National Bank (“Bank”) pursuant to 12 U.S.C. § 1821 (c)(5) because of unsafe and unsound banking practices, including insider abuses. On April 1,1996, the Federal Deposit Insurance Corporation (“FDIC”), acting as receiver for the bank, brought suit against Gerald…