Board of Governors of the Federal Reserve System v. McOrp Financial, Inc.

Summary

The Court held that the District Court lacked jurisdiction to enjoin either of the Federal Reserve Board’s ongoing administrative proceedings against MCorp. The proceedings fell within the Bankruptcy Code’s police-or-regulatory-power exception to the automatic stay, and bankruptcy jurisdiction did not override FISA’s express jurisdictional bar. Leedom v. Kyne did not authorize review because MCorp had an adequate opportunity for judicial review of a final Board order and Congress had expressly precluded interlocutory intervention. The Court reversed the Court of Appeals as to the source-of-strength proceeding and affirmed as to the § 23A proceeding, without deciding the validity of the source-of-strength regulation. Justice Stevens wrote for the Court; Justice Thomas did not participate, and there were no separate opinions.