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The Liability Of Officers And Directors Under The Financial Institutions Reform, Recovery And Enforcement Act Of 1989, Jon Shepherd

Michigan Law Review

This Note argues that FIRREA's gross negligence standard implements a minimum federal requirement that preempts state law only to the extent state law provides a more relaxed criterion. Part I examines the plain meaning of the statute and concludes that FIRREA preempts state law only to the extent the state law standard of care is lower than gross negligence. Part II scrutinizes FIRREA's legislative history and demonstrates that Congress did not intend to prevent states from imposing more stringent standards of liability. Part III analyzes the policies behind FIRREA and argues that the statute's purposes are best served by allowing …