When a bank has failed,federal banking agencies have used a doctrine called ________ to avoid certain debts that would ordinarily be valid against the bank.

Question

Quizplus · Accepted Answer

The doctrine referred to in the question is the D'Oench, Duhme doctrine, which allows federal banking agencies to avoid certain debts that would ordinarily be valid against the bank. This doctrine was established by two Supreme Court cases in the mid-20th century and generally applies to instances where the bank has made misrepresentations or omissions to a third party regarding the value or nature of an asset. Choices A, B, and D are not relevant to this doctrine.

When a Bank Has Failed,federal Banking Agencies Have Used a Doctrine