NCJ Number
138325
Journal
Banking Law Journal Volume: 109 Issue: 2 Dated: (March-April 1992) Pages: 165-175
Date Published
1992
Length
11 pages
Annotation
The U.S. Supreme Court, in United States v. Alamo Bank, dealt with a number of issues that went to the heart of the banking business as well as fundamentals of corporate organization.
Abstract
Two elements must be present to determine criminal liability: mens rea and actus reus. However, there are some exceptions which allow liability to be assigned even in the absence of any intent to commit a crime. Therefore, a corporate organization can be held criminally responsible for the actions of its employees even when they act counter to express orders. The case law regarding corporate liability for the actions of a predecessor or acquired corporation has been less clear. By ruling that an acquiring State bank was criminally liable for the actions of a national bank prior to their merger, the Court probably initiated a dampening effect on the acquisition of insolvent thrift banks by healthier institutions. The author suggests that this decision has created a dangerous precedent that needs to be corrected by Congress or the Federal regulatory agencies. Alamo has created a new chapter of corporate law in which the courts must ascertain whether regulated financial institutions should be treated differently from other corporations in terms of liability. 44 notes