De La Fuente v. Federal Deposit Insurance

MEMORANDUM **

Roque De La Fuente II was removed from his position as a bank director and *45 permanently banned from the banking industry by the Federal Deposit Insurance Corporation pursuant to section 8(e) of the Federal Deposit Insurance Act, 12 U.S.C. § 1818 (e). The FDIC determined that De La Fuente violated Regulation 0, 12 C.F.R. § 215.1-13 , and Section 23A of the Federal Reserve Act, 12 U.S.C. § 371c, and engaged in transactions involving unsafe and unsound banking practices. On petition for review, we upheld most of the regulatory violations, reversed the statutory violations, and remanded to the FDIC to decide, in light of the remaining violations, whether a life-time ban was justified. See De La Fuente v. Federal Deposit Ins. Co., 332 F.3d 1208 (9th Cir.2003). On remand, the FDIC reimposed the sanction. We conclude the FDIC’s decision was neither arbitrary nor capricious and not an abuse of discretion. See Kim v. Office of Thrift Supervision, 40 F.3d 1050, 1052-53 (9th Cir.1994) (noting standard of review). Accordingly, we deny the petition for review.

DISCUSSION

Our prior decision established that De La Fuente violated Regulation O and engaged in two loan-related…