Poledne Rotta advokáti


Judge rejects bank's TARP defense against award

PHILADELPHIA — A federal judge has refused to vacate an arbitrator's award despite a bank's argument that it amounted to an illegal "golden parachute" that violated the Troubled Asset Relief Program.

U.S. District Judge Timothy Savage concluded that Royal Bank America's defense under TARP was not enough to confer federal jurisdiction under the Federal Arbitration Act.
Royal Bank argued that, as a participant in the TARP program, it was prohibited from making "golden parachute payments," and that an arbitrator showed "manifest disregard" for the federal law when she awarded $48,329 to former bank executive James Kirkpatrick.