Full opinion text
MEMORANDUM JOSEPH H. YOUNG, District Judge. I. BACKGROUND This case concerns alleged misconduct on the part of certain directors, employees, and officers of County Federal Savings and Loan Association (“County”). County, a federally chartered savings and loan association insured by the Federal Savings and Loan Insurance Corporation (“FSLIC”), ceased to exist on August 10, 1981, when it was merged into Metropolitan Federal Savings and Loan Association with approximately $21 million in FSLIC assistance. The merger resulted from County’s insolvency and its inability to meet the financial requirements to stay in operation. As part of the merger, Metropolitan succeeded to all claims County had against its former directors, officers, and others. On April 21, 1983, the FSLIC received an assignment of all such claims from Metropolitan and seven days later, brought this suit against certain former directors, officers, and employees of County for, among other things, intentional and negligent breach of fiduciary duty, fraud, waste, violation of various federal statutes and regulations, and diversion of corporate opportunities. In May, 1984, several of the defendants filed counterclaims against the FSLIC, the United States of America, and “John Doe, one or more unknown agents of the Federal Savings and Loan Insurance Corporation and/or the Federal Home Loan Bank Board.” motions have been filed and The following/require resolution at this time: (1) Defendant Fisher’s motion for partial summary judgment; (2) FSLIC’s motion to dismiss counterclaims filed by defendants; (3) FSLIC’s motion for partial summary judgment against defendant Pollin; and (4) Defendant directors’ motion for summary judgment on primary punitive damages II. DEFENDANT FISHER’S MOTION Defendant Leolla Fisher has filed a motion for summary judgment and a supporting memorandum seeking the dismissal of claims involving two limited allegations made against her by the FSLIC in its amended complaint. The first allegation concerns Fisher’s participation in a real estate appraisal and inspection business known as Real Property Associates (“RPA”) while serving as an officer and employee of County. The defendant argues in her motion that the plaintiff’s claim based on this allegation is barred by the statute of limitations. The defendant also seeks the dismissal of a second cause of action which arises from an allegation that defendant Fisher charged excessive, unauthorized, and unreasonable expenses to County. Arguing that this allegation is entirely without factual support and that the claim arising therefrom is also barred by the statute of limitations, defendant Fisher does not seek summary judgment on any of the other claims pending against her. A. Fisher’s Involvement with County Defendant was employed by County and served in its loan department from February, 1971 through December, 1979. She served as Vice-President and manager of County’s construction loan department from 1977 until her resignation of September 20, 1979 became effective on or before January 31, 1980. Plaintiff alleges that “Fisher’s department was plagued with problems during her stewardship” and that both the Federal Home Loan Bank Board (“FHLBB”) and County’s outside auditing firm of Hoye, Graves, Bailey, and Associates (“HGB”) discovered and reported several improper practices in County’s construction loan department. These alleged improprieties include: making disbursements to borrowers without completing adequate inspection reports to show that the disbursements were warranted, violations of FHLBB regulations, the underreporting of problem loans and other substantial assets to FHLBB, deducting interest and fees from undispursed loan funds rather than requiring the borrowers to pay those charges, taking charges into income when they had not been paid by the borrower, the lack of inspection reports to verify disbursements, authorizing disbursements from borrowers for work that had not been done, conflicts of interest because of Fisher’s involvement with RPA, accepting gifts from County borrowers and later making favorable recommendations on loan requests from those borrowers, making false journal entries in County’s loan records, and receiving payments from County that are unsupported by the association’s records or do not appear to be directly business related. Finally, Fisher’s resignation as Vice-President and Construction Loan Department Manager of County purportedly was submitted in response to an ultimatum from the board of directors that she either divest, herself of any interest in RPA or resign from County Federal. B. Discussion In her memorandum in support of the motion for partial summary judgment (“Defendant’s Memorandum”), Fisher argues that any cause of action against her on account of her participation in RPA is barred by the statute of limitations because County knew that it had such a cause of action before April 28, 1980. In support of this contention, defendant cites the Maryland statute of limitations contained in § 5-101 of the Maryland Courts and Judicial Proceedings Article which provides that a “civil action at law shall be filed within three years from the date it accrues ...” Defendant argues that under both Maryland and federal law, the cause of action accrues at the time the claimant knows or should reasonably know of the existence of its claim. Defendant then asserts that County knew about its alleged cause of action against her relating to her participation in RPA before April 20, 1980, and could have filed an action against her but elected not to do so; instead, County chose to use its alleged cause of action against Fisher and others as a shield against their instituting litigation against the association. Defendant concludes that there is no basis for suspending the statute of limitations for any period because the members of County’s Board of Directors had no interest in RPA nor was Fisher a member of the board of directors; thus, defendant insists that tolling the statute of limitations for the period in which the defendant directors controlled County’s board is inappropriate as a matter of law. Defendant Fisher also contends that there is no evidence in the record to establish a cause of action against her based on allegations of excessive, unauthorized, and unnecessary travel or other expenses. Moreover, defendant suggests that assuming arguendo that the plaintiff has shown some articulable basis for asserting such a claim, there is no basis in fact for the Court to conclude that County could not have filed suit against Fisher for the allegedly unreasonable expenditures in July, 1979, when the FHLBB Annual Report was submitted to County, and therefore, any such claim is barred by the statute of limitations for the same reasons the claims arising out of the defendant’s involvement with RPA are time barred. 1. Plaintiffs Claims Involving Real Property Associates and Excessive Expenditures- are not barred by the Statute of Limitations The Court ruled on the limitations issue in this case when it denied defendant Pollin’s motion for summary judgment, a motion very similar to the instant one. FSLIC v. Williams, Y-83-1422 (D.Md. May 1, 1984) (marginal order denying defendant Pollin's motion for summary judgment). Defendant Fisher’s motion for summary judgment must also be denied as neither of the plaintiff's claims contested here are barred by the statute of limitations. Since this action is one brought by an agency of the United States, see Acron Investments, Inc. v. FSLIC, 363 F.2d 236 (9th Cir.), cert. denied, 385 U.S. 970, 87 S.Ct. 506, 17 L.Ed.2d 434 (1966); 28 U.S.C. § 451; 12 U.S.C. § 1730(k)(l)(A), through assignment, the Court must analyze the limitations issue using a two step inquiry. First, the applicable state statute of limitations must be considered to determine whether it expired before the assignment. If the state statute did not expire by the date of the assignment it must then be determined whether the federal statute of limitations applicable to claims made by federal agencies expired by the date the instant suit was filed. See Guaranty Trust Co. v. United States, 304 U.S. 126, 141, 58 S.Ct. 785, 793, 82 L.Ed. 1224 (1938); FDICv. Bird, 516 F.Supp. 647, 650 (D.P.R. 1981); United States v. Cardinal, 452 F.Supp. 542 (D.Vt.1978). The pertinent Maryland statute of limitations requires that “a civil action at law be filed within three years from the date it accrues...” Md.Ann.Code Maryland Courts and Judicial Proceedings § 5-101 (1984). Under both Maryland and federal law, no cause of action accrues for thé purposes of invoking the statute of limitations until a claimant (in this case County) knows or reasonably should know of the existence of its claim. See Poffenberger v. Risser, 290 Md. 631, 431 A.2d 677 (1981); 28 U.S.C. § 2416. Defendant suggests that County knew of the existence of its claims concerning RPA before April 28, 1980. To support this contention, defendant relies on a letter dated April 25, 1980, from Thomas Jackson, counsel for County, to defendant’s attorney aprising him of County’s claims against defendant Fisher and her RPA associates. However, the defendant has not shown beyond any doubt that County knew or reasonably should have known of these causes of action against the defendant on or before April 21, 1980 (the date of the assignment of Metropolitan’s claims to the FSLIC). Because the evidence presented to the Court must be construed in favor of the party opposing the motion for summary judgment, with the benefit of all favorable inferences that can be drawn from it, Wright, Miller and Kane, 10A Federal Practice and Procedure: Civil 2d § 2727 at 124-125 (1983), citing Adickes v. S.H. Kress and Co., 398 U.S. 144, 90 S.Ct. 1598, 26 L.Ed.2d 142 (1970); Cole v. Cole, 633 F.2d 1083, 1090 (4th Cir.1980) (quoting Wright and Miller); see United States v. Diebold, 369 U.S. 654, 655, 82 S.Ct. 993, 994, 8 L.Ed.2d 176 (1962), the Court may not assume that County knew or should have known of its causes of action against the defendant concerning her involvement in RPA before the letter informing the . defendant of the existence of the potential claims against her was sent to her attorney by County’s attorney. Moreover, the claims concerning RPA and the causes of action relating to the defendant’s allegedly excessive and unauthorized expenditures did not accrue during the period in which County was controlled by allegedly culpable defendant directors. See infra, pp. 1193-1194. Consequently, these, claims were not barred on the date of the assignment to the FSLIC. The federal statute of limitations applies from the date of the assignment until April 28, 1983, the date the current suit was filed. See Guaranty Trust, 304 U.S. at 141, 58 S.Ct. at 793; FDIC v. Bird, 516 F.Supp. at 650. The federal statute provides, in pertinent part: (a) Subject to the provisions of section 2416 of this title, and except as otherwise provided by Congress, every action for money damages brought by the United States or an officer or agency thereof which is founded upon any contract, express or implied in law or fact, shall be barred unless the complaint is filed within six years, after the right of action accrues or within one year after final decisions have been rendered in applicable administrative. proceedings required by contract or by law, whichever is later; (b) subject to the provisions of section 2416 of this title, and except as otherwise provided by Congress, every action for money damages brought by the United States or an officer or agency thereof which is founded upon a tort shall be barred unless the complaint is filed within three years after the right of action first accrues, [emphasis added]. The period for bringing an action under this statute had not expired and extinguished the FSLIC’s claims against defendant Fisher at the time this suit was instituted because of the existence of a tolling principle which postponed the date that the limitations period commenced. It is widely held that the limitations “statute is tolled while a corporate plaintiff continues under the domination of ... wrongdoers.” 3A Fletcher Cyclopedia Corporations, § 1306.2 (1975). The causes of action against former directors and officers of an institution do not accrue while the culpable group of defendants retain control of the institution and the limitations statute does not begin to run against an officer who resigns if the remaining culpable directors and officers retain control after the officer’s resignation. See ITT v. Comfeld, 619 F.2d 909, 930-931 n. 24 (2d Cir.1980); International Railways of Central American v. United Fruit Company, 373 F.2d 408 (2d Cir.), cert. denied, 387 U.S. 921, 87 S.Ct. 2031, 18 L.Ed.2d 975 (1967); Michelsen v. Penney, 135 F.2d 409, 416 n. 2 (2d Cir.1943); Payne v. Ostras, 50 F.2d 1039 (8th Cir.1931); Hughes v. Reed, 46 F.2d 435 (10th Cir.1931); FDIC v. Bird, 516 F.Supp. at 651-652; Saylor v. Lindsay, 302 F.Supp. 1174, 1184 (S.D.N.Y.1969); Loughman v. Pitz, 36 F.Supp. 302 (E.D.N.Y. 1941). The better reasoned cases require the addition of a disinterested majority of non-culpable directors to cease the tolling of the statute of limitations. Compare, e.g., Allen v. Wilkerson, 396 S.W.2d 493 (Tex. Civ.App.1965) (disinterested majority of directors necessary to terminate tolling) with International Railways, 373 F.2d 408 (2d Cir.1967) (addition of non-culpable directors sufficient to terminate tolling provided that new directors are able to discover wrongdoing and would be able to induce the corporation to sue). The rationale for this principle is that control of the association by culpable directors and officers precludes the possibility of wfiling suit because these individuals can hardly be expected to sue themselves or to “initiate any action contrary to their own interests.” FDIC v. Bird, 516 F.Supp. at 552, quoting First State Bank of Hudson County v. United States, 599 F.2d 558, 563-64 (3d Cir.1979), cert. denied, 444 U.S. 1013, 100 S.Ct. 662, 62 L.Ed.2d 642. Additionally, control of the association relates to the concealment of causes of action from those who otherwise might be able to protect the association. The defendant urges that this Court should not apply these tolling principles in the instant case. Defewwwwwwwndant Fisher argues that these principles should not be applied here because she was not a member of County’s board of directors nor did any members of the board have any interest in RPA. However, even if true, her argument is legally unavailing and does not persuade this Court that the tolling principles discussed herein should not be applied. Although Fisher was not a member of the board of directors of County, the facts and circumstances surrounding this case indicate that the suspension of the statute of limitations during the period in which the culpable defendants remained in control of County is particularly appropriate in light of the rationale behind the applicable tolling principles. As defendant Reeves’ deposition and Thomas Jackson’s letter to Fisher’s counsel indicate, the allegedly culpable group of defendant directors and officers retained control of County after Fisher’s departure and would not sue her for neglect and other improprieties associated with the operation of County, many of which they might be found guilty themselves. County’s recognition of its claims against defendant Fisher in 1980 was an obvious attempt to prevent Fisher from airing the circumstances of the alleged mismanagement of County in a public forum. If County had made claims against defendant Fisher for her neglect and breach of duties in 1980, she no doubt could have argued as a defense that County’s losses were also caused or contributed to by Reeves and the defendant directors. Reeves arid the directors would not risk dividing the culpable defendants by making claims against the Fisher defendants (those defendants having an interest in RPA) for breach of duties which also may have exposed them to liability for the same. Additionally, County’s causes of action against Fisher were not effectively discovered until after the allegedly culpable directors .relinquished control of the association and therefore the accrual of these causes of action was postponed until that time. A cause of action does not accrue until it is known or can be discovered through the rise of reasonable diligence, Poffenberger v. Risser, 290 Md. 631, 431 A.2d 677 (1981); 28 U.S.C. § 2416, by a non-culpable person with the authority to bring an action. Furthermore, the failure to use due diligence in discovering the claim may be excused where, as here, a fiduciary duty exists between defendant Fisher and County. See Merchants Mortgage Company v. Lubow, 275 Md. 208, 339 A.2d 664 (1975). This legal principle is related to the tolling principles discussed previously. County could not effectively discover its causes of action against Fisher while the allegedly culpable directors retained control of the association and possessed the knowledge that would result in County’s discovery of its claims against them. In FDIC v. Bird, supra, at 647, the FDIC received an assignment of claims against the former directors and officers of an insolvent bank and filed suit to pursue those claims. Certain of the defendants filed a motion to dismiss the complaint on limitations grounds but the court denied the motion and reasoned that “in no meaningful sense can it be said that the claims could have been sued upon prior to the bank’s failure and the appointment of a receiver ... [given] the domination of [the bank’s] board of directors and management by [the culpable defendants].” Id. at 651. Here, the association’s claims against the Fisher group were not, and could not have been, discovered by persons at County in a position to pursue them before the appointment of a disinterested director in October, 1980. More realistically, these claims were not effectively discovered until after the FSLIC engineered County’s merger with Metropolitan in August, 1981. This Court is persuaded that the better rule of law provides for the tolling of the statute of limitations, Allen, ■ 396 S.W.2d at 493, and the postponement of the accrual of a cause of action until after the culpable defendants have relinquished control of the institution, Michelsen v. Penney, 135 F.2d 409 (2d Cir.1943); Adams v. Clarke, 22 F.2d 957, 959 (9th Cir.1927); FDIC v. Bird, 516 F.Supp. at 651, control is persumed where such directors constitute a majority of the board. However, the instant action was filed in a timely manner regardless of the approach adopted by this Court to determine when the tolling of the limitations statute ceased. No new independent directors were added to County’s board until October of 1980. The allegedly culpable directors retained unanimous control of County until that time and enjoyed an overwhelming majority on the board until the August, 1981 merger with Metropolitan. This suit was filed well within the three and six year limits even if the earlier date to mark the end of the tolling period is used. Thus, the plaintiff’s claims involving RPA are not barred by either the Maryland or federal statute of limitations and defendant’s motion for summary judgment based thereon is accordingly denied. For the same reasons, plaintiff’s claims against Fisher involving excessive and unauthorized expenditures are not barred by the statute of limitations. 2. There are Sufficient Facts In The Record to Support Plaintiffs Claims Involving Excessive and Unauthorized Claims In her motion and memorandum, defendant Fisher argues that the FSLIC has failed to present evidence establishing a cause of action against her based upon its allegations of “excessive, unauthorized, and unnecessary travel or other expenses.” This contention is clearly erroneous. Defendant appears to assert that these expenses were reasonable, authorized, and business related. This assertion is contradicted by the 1979 FHLBB Examination Report, verified by the Chapman affidavit which states that “[a] number of the payments are either unsupported by the association’s records or do not appear to be directly business related.” Defendant Fisher’s assertion is also contradicted by her deposition testimony in which she admitted that she charged meals at which she discussed RPA business to County. A motion for summary judgment may not be granted if there is a genuine issue of material fact. See Wright, Miller, and Kane, 10 Federal Practice and Procedure: Civil 2d § 2712; at 574 (1983). It is improper for this Court to decide the applicability of a legal rule on a motion for summary judgment if the materials before the Court raise a genuine issue as to ultimate facts material to the applicability of the legal rule. United States v. Diebold, 369 U.S. at 655, 82 S.Ct. 994. Summary judgment is not a substitute for the trial of disputed factual issues, Wright, Miller, and Kane, 10 Federal Practice and Procedure: Civil 2d § 2712 at 574 (1983), citing Richard Colgin Co. v. Diamond Crystal Salt Co., 32 F.R.D. 44, 45-46 (D.N.C.1963), and any inferences to be drawn from the facts contained in the record must be viewed in a light most favorable to the party opposing the motion for summary judgment. United States v. Diebold, 369 U.S. at 655, 82 S.Ct. 994. See Adickes, 398 U.S. at 144, 90 S.Ct. at 1598; Cole, 633 F.2d at 1090. Even where the facts in evidence are undisputed, summary judgment is inappropriate where the evidence is such that conflicting inferences may permissibly be drawn therefrom. United States v. Diebold, 369 U.S. at 655, 82 S.Ct. 994; Phoenix Savings and Loan v. Aetna Casualty and Surety Company, 381 F.2d 245, 249 (4th Cir.1967); Batchelor v. Legg, 55 F.R.D. 557, 561 (D.Md.1972). In light of these well established principles, the decision as to the reasonableness and appropriateness of expenses Fisher charged to County while it was in serious financial difficulty is one to be decided by the trier of fact at trial and not by the Court on a motion for summary judgment. Accordingly, defendant Fisher’s motion for partial summary judgment on the excessive expenditure claim is denied. III. THE FSLIC’S MOTION TO DISMISS DEFENDANTS’ COUNTERCLAIMS A. Defendants’ Counterclaim Against the United States Generally, the defendants allege in their counterclaims against the United States that the losses and damages suffered by County were caused or at least significantly contributed to by the culpably wrongful conduct of federal agents and that these federal agents and ultimately the United States should bear the responsibility of liability. The wrongful conduct they allege includes assertions that federal agents, in 1971-75, harassed County with unwarranted and unnecessary investigations and examinations, pursued sanctions against individuals associated with County, encouraged media attention concerning County which resulted in the demoralization of County employees, and by 1979, had forced County out of business. Moreover, the defendants allege that these federal agents delayed in arranging a merger of County with Metropolitan, finally forcing unfavorable merger terms in August of 1981. More specifically, the allegations in the defendant directors’ counterclaim are as follows: (1) Count I states that the federal agents breached their duty to advise and to assist County in conducting its operations. (2) Count II states that the federal agents intentionally and improperly interfered with County’s actual and potential contractual relationships by conducting wrongful examinations and by fraudulently inducing County directors to allow a supervisory merger with Metropolitan. (3) Count III states that the federal agents breached their duty to preserve the confidentiality of County’s business by disclosing internal matters to the media. (4) Count IY states that the federal agents negligently operated County from February, 1981 until the merger with Metropolitan in August, 1981, that the government exceeded its regulatory role in assuming substantial control of County and, therefore, that the government had a duty to exercise reasonable care in the operation of the association. (5) Count V states that the federal agents falsely represented to County that the merger could be completed expeditiously. (6) Count VI states that, in combination with others, the federal agents conspired to interfere with County’s business, and to convert County’s asserts. (7) Counts VII and. VIII assert that the federal agents violated the constitutional protections of due process and equal protection. 1. The United States has not Waived its Immunity and thus a Counterclaim for Damages may not be Maintained It is a well settled principle of law that the United States, as sovereign, is immune from suit except where it has consented to be sued. United States v. Mitchell, 463 U.S. 206, 209, 103 S.Ct. 2961, 2965, 77 L.Ed.2d 580 (1983); Food Town Stores, Inc. v. Equal Opportunity Commission, 708 F.2d 920 (4th Cir.1983). Moreover, the United States may define the terms and conditions upon which it may be sued. United States v. Kubrick, 444 U.S. 110, 117-18, 100 S.Ct. 352, 356-57, 62 L.Ed.2d 259 (1979). The Federal Tort Claims Act (“FTCA”), 28 U.S.C. §§ 1346(b), 2671-2680, the statute upon which this Court’s jurisdiction over the United States in this action is predicated, effectively waives the sovereign immunity of the United States in civil actions involving tort claims. This waiver of sovereign immunity is, however, subject to certain ennumerated jurisdictional prerequisites and statutory exceptions. These exceptions in 28 U.S.C. § 2680 limit the . waiver of sovereign immunity set forth in 28 U.S.C. § 1346(b). a. The Claim Involving. Discretionary Acts Allegedly Performed by the United States is Barred by the Discretionary Function Exception to the.FTCA ■ The discretionary function exception to the FTCA, 28 U.S.C. § 2680(a), provides that: [T]he provisions of this chapter and § 1346(b) of this title shall not apply to— (a) Any claims based upon an act or omission of an employee of the Government, exercising due care, in the execution of a statute or regulation, whether or not such statute or regulation be valid, or based upon the exercise or performance or the failure to exercise or perform a discretionary function or duty on the part of a Federal Agency or an employee of the Government, whether or not the discretion involved be abused. This subsection excludes claims based on the execution of a discretionary function by a federal agency, whether or not the discretion is abused. Dalehite v. United States, 346 U.S. 15, 33, 73 S.Ct. 956, 966, 97 L.Ed. 1427 (1953). Where the discretionary function exception to the FSLIC applies, the Court lacks subject matter jurisdiction over the action. See id. at 18, 24, 73 S.Ct. at 959, 962. This exception insulates' the government from liability, in tort, for errors made in. its administrative, regulatory, or quasi-legislative (rulemaking) capacity. Thus, regulatory acts undertaken by the United States and policy determinations, decisions, and conduct of administrators, requiring the exercise of judgment, are exempted from coverage by the FTCA as discretionary functions. Id. at 35-36, 73 S.Ct. 967-68. The legislative history of 28 U.S.C. § 2680 indicates that Congress intended to carve out an area of tort liability to which it was unwilling to subject the government. The clearly expressed purpose of § 2680(a) is to exclude claims based upon the regulatory activities of the federal government. See In re Franklin National Bank Securities Litigation, 478 F.Supp. 210 (E.D.N. Y.1979). The legislative history of 28 U.S.C. § 2680 reveals that: The first subsection ... exempts from the bill claims based upon the performance or nonperformance of discretionary functions or duties on the part of a Federal agency or Government employee, whether or not the discretion involved be abused,____ This is a highly important exception, intended to preclude any possibility that the bill might be construed to authorize suit for damages against the Government growing out of an authorized activity ____ It is also designed to preclude application of the bill to a claim against a regulatory agency, ... based upon an alleged abuse of discretionary authority by an officer or employee, whether or not negligence is alleged to have been involved. H.R.Rept. No. 2245, 77th Cong., 2nd Session, 10 (1942). Consistent with the intent of Congress in excluding claims based on federal regulatory activities similar to those involved in the instant case, federal courts have repeatedly upheld the discretionary function exception as a bar to tort suits seeking to impose liability for the decisions of federal agents who have used their judgment in exercising, or refraining from exercising, their statutory and regulatory power. E.g., Lynch v. United States Department of Army Corps of Engineers, 474 F.Supp. 545 (D.Md.1978); Bernitsky v. United States, 620 F.2d 948 (3d Cir.1980), cert. denied, 449 U.S. 870, 101 S.Ct. 208, 66 L.Ed.2d 90 (1981); Barton v. United States, 609 F.2d 977 (10th Cir.1979); Huntington Towers, Ltd. v. Franklin National Bank, 559 F.2d 863 (2d Cir.1977), cert. denied, 434 U.S. 1012, 98 S.Ct. 726, 54 L.Ed.2d 756 (1978). While the Supreme Court did not define precisely the parameters of the discretionary function exception in Dalehite v. United States, 346 U.S. at 15, 73 S.Ct. at 956, it did state that: ... ‘the discretionary function or duty’ that cannot form a basis for suit under the Tort Claims Act includes more than the initiation of programs and activities. It also includes determinations made by executives or administrators in establishing plans, specifications, or schedules , of operations. Where there is room for policy judgment and decision there is discretion. (emphasis added) Id. at 35-36, 73 S.Ct. at 967-68. In United States v. Empresa De Viacao, — U.S. -, 104 S.Ct. 2755,. 81 L.Ed.2d 660 (1984) (hereinafter Varig), the Supreme Court emphasized the continued validity of its original interpretation of the discretionary function exception, stating that it did “not accept the supposition that Dalehite no longer represents a valid interpretation of the discretionary function exemption” Id. 104 S.Ct. at 2764. The Court then reiterated two dispositive factors to be considered in determining the applicability of the discretionary function exemption. First, it noted that “it is the nature of the conduct ... that governs whether the discretionary function exemption applies in a given case.” Id. 104 S.Ct. at 2765. Second, the discretionary function “plainly was intended to encompass the discretionary acts of the Government acting in its role as a regulator of the conduct of private individuals ____ Congress wished to prevent judicial ‘second guessing’ of legislative and administrative decisions grounded in social, economic, and political policy through the medium of an action in tort.” Id. More succinctly, the discretionary function exemption applies when the activity is regulatory in nature. Even before the Varig decision, many federal courts identified banking agency activity as “planning,” and therefore, well within the discretionary function exemption. Emch v. United, States, 630 F.2d 523 (7th Cir.1980), cert. denied, 450 U.S. 966, 101 S.Ct. 1482, 67 L.Ed.2d 614 (1981); Davis v. Federal Deposit Insurance Corporation, 369 F.Supp. 277 (D.Colo.1974); see Huntington Towers Limited v. Franklin National Bank, 559 F.2d 863 (2d Cir.1977). Emch involved allegations of negligence on the part of the Federal Deposit Insurance Corporation and its agents. The plaintiff alleged specifically that the FDIC and its agents failed to exercise reasonable care at the operational level of their regulatory activities, that they allowed fraudulent and misleading reports to be released, and that they made errors in the course of examining the bank, all of which were the proximate cause of the bank’s insolvency and its related losses. The plaintiff also alleged that the FDIC took control over the day-to-day banking activities and therefore should be held liable for the resulting losses. The District Court, recognized that when a federal agency exceeds its normal regulatory role and assumes control over the day-to-day activities of the bank, thereby inducing the bank and its directors to rely on the agency’s actions to prevent fraud, the United States loses its protection from liability and subjects itself to suit if it has negligently performed the extra-statutory functions which it has undertaken to perform. Emch, 474 F.Supp. at 102, citing In re Franklin National Bank Securities Litigation, 445 F.Supp. 723, 728, 731, 733-34 (E.D.N.Y.1978). The court found, however, that the allegations in the complaint before it did not allege negligence of the type found by the court in In re Franklin National Bank Securities Litigation. Despite plaintiff’s inclusion of the word “operational” in his complaint, the Court is persuaded that a fair reading of the complaint filed in this case fails to disclose a cause of action of the type discussed in In re Franklin National Bank Securities Litigation, ... and that the claim as actually set forth is barred by the provisions of 28 U.S.C. § 2680(a) and (h). Emch, 474 F.Supp. at 102. In Count IV of the defendants’ counterclaim under consideration, the defendant directors assert that federal agents exceeded their regulatory role by assuming substantial control over County’s banking activities and, therefore had a duty to exercise reasonable care in the maintenance of operations and the disposition of County’s assets. The defendants allege further that federal agents breached their duty of care and negligently operated the association. These allegations are without merit, and must be dismissed. Although this Court may dismiss a claim only if it “appears beyond a doubt that the plaintiff can prove no set of facts in support of his claim which would entitled him to relief.” Conley v. Gibson, 355 U.S. 41, 44-46, 78 S.Ct. 99, 101-102, 2 L.Ed.2d 80 (1957), the Court is not bound to accept conclusory allegations concerning the legal effect of the acts and omissions the plaintiff has set out if these allegations do not reasonably follow from his description of what happened. Wright, Miller, and Kane, 5 Federal Practice and Procedure: Civil § 1357, at 597 (1969). A pleader is not able to rely solely on “averments that on their face comprehend activity clearly exempt from liability.” City of Gainsville v. Florida Power and Light Co., 488 F.Supp. 1258, 1264 (D.Fla.1980). Count IV of the counterclaim alleges that the United States is susceptible to suit because federal agents exceeded their regulatory role by assuming control over County’s daily banking operations. However, there is no evidence in the record that the FSLIC was ever appointed as receiver of County or that it purchased any of County’s assets in its corporate ca-parity. Defendant’s attempt to support their counterclaim by asserting that the FSLIC and the Federal Home Loan Bank Board (“FHLBB”) used and threatened to use their statutory powers to dominate and direct the operations of County. However, rather than supporting their claim, this contention instead reveals the unavailing nature of it. As in Emch, this case is one in which the United States is not subject to suit under the FTCA because the defendants’ counterclaim contemplates conduct involving a federal agency’s performance of its statutorily mandated duties to regulate and examine member associations. Emch, 474 F.Supp. at 102. This is not an “extraordinary case” alleging “operational level negligence of the kind found by the court to have been alleged in In re Franklin National Bank Securities Litigation.” Here the FSLIC did not exceed its normal regulatory role, and thus, its conduct falls within the discretionary function exemption in 28 U.S.C. § 2680(a). Moreover, in First Savings and Loan Insurance Corporation v. Alexander, 590 F.Supp. 834 (D.Hawaii 1984), the district court held that the discretionary function exemption barred the claim brought against the United States even though the FSLIC assumed the position of receiver of First Savings and Loan and clearly directed the disposition of its assets and liabilities. In dismissing the claim, the court found, as a matter of law, that the FSLIC had no duty to warn the defendants about the unsavory financial reputations of individuals with whom it was dealing or about the loans it made and other financial activities in which it was engaged because the nature of the FSLIC’s involvement with First Savings was purely regulatory and, as such, constituted an exercise of a discretionary function. The allegations of the defendant in the instant case concern the performance by the FSLIC and its agents of their statutory duties to regulate and examine member associations. Policy judgments and decisions are involved in the performance of these regulatory duties, and “where there is room for policy judgment and decision, there is room for discretion.” Dalehite, 346 U.S. at 36, 73 S.Ct. at 968. Thus, the defendants’ counterclaim alleges, at most, an abuse of eongressionally authorized discretion, see Newberg v. FSLIC, 317 F.Supp. 1104 (N.D.Ill.1970), and is not actionable under the FTCA. Dalehite, 346 U.S. at 33, 73 S.Ct. at 966. b. A Claim Against the United States Based on Misrepresentation, Conspiracy, or Interference with Contracts Is Barred by 28 U.S.C. § 2680(h) Section 2680(h) of 28 U.S.C. provides in pertinent part: The provisions of this chapter and section 1346(b) of this title shall not apply to — ... (h) Any claim arising out of ... misrepresentation, deceit, or interference with contractual rights ... (emphasis added). (i) Defendants’ Allegations of Misrepresentation, Deceit, and Conspiracy are Barred The defendant directors assert two counts in their counterclaim against the United States which sound in misrepresentation and deceit. Count Y alleges that federal agents made false representations to County with respect to the planned merger with Metropolitan. Count VI alleges that federal agents conspired, with others, to convert County’s assets by fraudulently inducing and coercing the directors into a merger with Metropolitan. The fact that the defendants have separated the allegations of misrepresentation from the charge of conspiracy does not render § 2680(h) inapplicable and thus this exception in the FTCA remains as a bar to the defendants’ counterclaim. See generally Harrah v. Miller, 558 F.Supp. 702, 705 (S.D.W.Va.1988); Lynch, 474 F.Supp. at 551-52 (D.Md.1978); Colonial Bank and Trust Company v. American Bankskares, 439 F.Supp. 797, 803 (E.D.Wis.1977) (any claims arising out of or related to misrepresentation are barred by § 2680). “The gist if the action is not the conspiracy charged, but the tort working damage.” James v. Evans, 149 F. 136, 140 (3d Cir.1906). Where “a claim purports to be grounded in theories other than misrepresentation, the exception set out in 28 U.S.C. § 2680(h) would [still] bar the action if deceit or misrepresentation were a factor relied upon to. maintain a suit.” Goodman v. United States, 324 F.Supp. 167, 172 (M.D.Fla. 1971), aff'd per curiam, 455 F.2d 607 (5th Cir.). In Newberg v. FSLIC, 317 F.Supp. 1104 (N.D.Ill.1970), the court considered a claim against the FSLIC alleging conspiracy to defraud and liquidate a savings and loan association. The plaintiff, a shareholder of the savings and loan association which had been purchased by the FSLIC, alleged further that he had been fraudulently induced to buy shares in the association purchased by the FSLIC. Nonetheless, the court dismissed the claim holding that the allegations failed because of subsections (a) and (h) of § 2680. Id. at 1107. This holding reaffirmed the principle that § 2680(h) bars claims based on a failure to use due care in communicating information. In United States v. Neustadt, 366 U.S. 696, 81 S.Ct. 1294, 6 L.Ed.2d 614 (1961), a purchaser of property, brought an action under the FTCA for damages allegedly resulting from a negligent inspection of property by an FHA appraisal. The Supreme Court held that the claim was barred by § 2680(h) because this subsection “comprehends claims arising out of negligent, as well as willful, misrepresentation.” Neustadt, 366 U.S. at 702, 81 S.Ct. at 1298. The court stated further that: [i]n practically all such instances it may be said that the Government owes “a specific duty” to obtain and communicate information carefully, lest the intended recipient be mislead to his financial harm. While we do not condone carelessness by Government employees in gathering and promulgating such information, neither can we justifiably ignore the plain words Congress has used in limiting the scope of the government’s tort liability. Neustadt, 366 U.S. at 711, n. 26, 81 S.Ct. 1302, n. 26. See also Redmond v. United States, 518 F.2d 811 (7th Cir.1975) (claim based on the Securities and Exchange Commission’s failure to warn a purchaser concerning a fraudulent business deal barred). Likewise, the defendant directors in the instant case cannot circumvent the misrepresentation exception by charging negligence in the FSLIC’s efforts to regulate County as an insured savings and loan association. It is clear that the counterclaim asserts misrepresentation, and it is equally clear that such claims are barred by § 2680(h). Furthermore, numerous allegations of misrepresentation, fraudulent inducements, and failures to communicate are made by the defendants in their counterclaim. Count V specifically alleges that “federal agents falsely represented to County that the merger could be completed expeditiously.” Count VI asserts the “federal agents improperly and unlawfully interferred with County’s business, assisted and enabled Metropolitan to convert County’s assets by fraudulently inducing and coercing the directors into the merger____” By their own terms, the allegations in Counts V and VI involve misrepresentation and deceit and are therefore barred by § 2680(h). This misrepresentation exception applies even where the United States owed a specific duty to communicate accurate information. See Neustadt, 366 U.S. at 711, n. 26, 81 S.Ct. at 1302, n. 26. (ii) Defendants’ Allegation of Interference with Contractual Relationship is Barred Count II of the defendants’ counterclaim alleges inference with business and contractual relationships and thus is clearly barred by 28 U.S.C. § 2680(h). Although the breadth of the term “interference with contractual rights” is somewhat unclear, the term has frequently been applied to exclude claims arising in a commercial setting. In Newberg, 317 F.Supp. 1104, this exception was held to be applicable to a claim based on an allegation that the FSLIC had wrongfully purchased the assets of an insured savings and loan association in which the claimant had a prior contract to purchase a majority interest. In Goodman Group, Inc. v. Dishroom, 679 F.2d 182 (9th Cir.1981), the court appeared to broadly construe the exception in § 2680(h) when it reasoned that the FTCA is explicit in excluding from its coverage “any claim arising out of ... interference with contract rights.” Goodman involved allegations that the Department of Housing and Urban Development (HUD) tortiously interfered with a contract concerning joint efforts and cooperation between the parties with respect to the continued occupancy of a particular building. The Ninth Circuit concluded that the claim in Goodman must fail because of the operation of the exclusionary language in § 2680(h). Id. at 187. Finally, in Ocasio v. Banco Regional De Bayamon, 581 F.Supp. 1255 (D.Puerto Rico, 1984), the district court noted that the [contractual interference] exemption extends not only to an action of unlawful interferences of the existing contracts, but also to actions for the unlawful, interference with prospective contractual relations. Dupree v. United States, 264 F.2d 140, 143 (3d Cir.1959), reh. denied, 3d Cir. 266 F.2d 373, cert. denied, 361 U.S. 823 (1959). Ocasio, at 1258. Thus, the allegations in Count II of the defendants’ counterclaim are unavailing in the defendants’ effort to maintain their counterclaim against the United States. They embrace conduct on the part of the United States that is explicitly exempted from suit. 2. Defendants’ Counterclaim Against the United States Does Not Constitute a Counterclaim for Recoupment Absent a statutory waiver of sovereign immunity, a counterclaim against the United States for recoupment is appropriate only in those instances where the United States brings suit. Counterclaims against the United States in the nature of recoupment do not require a statutory waiver of sovereign immunity. See American Export Lines, 568 F.Supp. 956, 961 (S.D.N.Y.1983). However, the United States has not initiated this action; the FSLIC and not the United States is the plaintiff and thus the defendants’ counterclaim may not stand as a counterclaim “in the nature of recoupment.” Id. at 961. The FSLIC has a dual nature. It may assert a claim standing in the shoes of a member association pursuant to an assignment and it may exercise its discretion while performing in its capacity as a federal regulatory agency. This case vividly illustrates that dual character. FSLIC brought suit as an assignee of the claim Metropolitan inherited from County and as a federal regulatory agency and is, therefore, susceptable to claims for recoupment under appropriate circumstances. However, the counterclaims against the United States are inappropriate because the United States is not the plaintiff in this action. The United States and its federal agencies are separate entities for the purposes of suit. See 28 U.S.C. § 1346(b), 2679(a). The United States is not synonymous with the FSLIC as plaintiff in the original action as it has a separate and distinct nature as a plaintiff in this law suit. See 28 U.S.C. § 1345(a). In Stewart v. United States, 655 F.2d 741 (7th Cir.1981), the court rejected the argument that a suit against a federal agency, the Postal Service and its employees, was in effect a suit against the United States. Id. at 742. Thus, a suit brought by a federal agency is not necessarily a suit brought by the United States. In Hughes v. United States, 701 F.2d 56 (7th Cir.1982), the Seventh Circuit also recognized that there is a difference between the United States and its federal agencies. “[G]overnment agencies do not merge into a monolith; the United States is an altogether different party...” Id. at 58. In FDIC v. Glickman, 450 F.2d 416 (9th Cir. 1971), the Ninth Circuit identified the nature of the FDIC and distinguished it from the United States. The court noted, inter alia, that the FDIC was not represented by the United States Attorney as would be the United States if it were a party. Id. at 418. Other federal courts have distinguished between federal regulatory agencies and the United States for the purpose of determining their respective legal rights, liabilities, and standing to sue. In Lapadula Villani, Inc. v. United States, 563 F.Supp. 782 (S.D.N.Y.1983), a corporation terminated its operation and was liquidated. The proceeds from the liquidation were insufficient to satisfy the claims against the corporation and were deposited into a fund for which the corporation commenced an action seeking distribution. A battle ensued over the priority to be given to the various competing claims during the distribution. The court held that the FDIC was not entitled to absolute priority pursuant to a federal statute which provides that debts due to the United States shall be satisfied first whenever a person indebted to the United States is insolvent. The court reasoned that: The FDIC’s profits do not inure to the benefit of the United States and its losses are not born by the United States. Thus, the public treasury will be unaffected by the FDIC’s success or failure in recovering the debts owed to it as successor in interest to the claims of Franklin National Bank. It follows that the FDIC is not an integral part of the governmental mechanism but is rather a separate legal entity serving essentially a proprietary rather than a sovereign function____ Id. at 784. In a slightly different context, courts have considered certain factors in determining whether the United States is an appropriate party in an action. Whether a suit is considered to have been brought against the sovereign is not necessarily determined by whether or not the United States is named. The most availing inquiry is whether “the judgment sought would expend itself on the public treasury or domain.” Clark v. United States, 691 F.2d 837, 839 (7th Cir.1982) quoting Land v. Dollar, 330 U.S. 731, 738, 67 S.Ct. 1009, 1012, 91 L.Ed. 1209 (1946). See also Hawaii v. Gordon, 373 U.S. 57, 83 S.Ct. 1052, 10 L.Ed.2d 191 (1963). Where recovery can be had from funds in the possession and control of the agency and not from the United States Treasury, the United States is not involved in the suit. See Dugan v. Rank, 372 U.S. 609, 611, 83 S.Ct. 999, 1002, 10 L.Ed.2d 15 (1963); Blake Construction Co., Irte. v. American Vocational Association, Inc., 419 F.2d 308, 312 (D.C.Cir.1969); Marcus Garvey Square v. Winston Burnett Construction Co. of California, Inc., 595 F.2d 1126, 1131 (9th Cir.1979). In Portsmouth Redevelopment and Housing Authority v. Pierce, 706 F.2d 471 (4th Cir.1983), the Fourth Circuit found the United States to be an appropriate party because there was no separate fund for the payment of operating subsidies within the Housing and Urban Development Authority and the only funds available were from the public treasury. Here, the FSLIC is a government corporation but is not an “integral part of the governmental mechanism.” Lapadula, 563 F.Supp. at 784, citing Sloan Shipyards Corp. v. United States Ship ping Board Emergency Fleet Corp., 258 U.S. 549, 570, 42 S.Ct. 386, 389, 66 L.Ed. 762 (1922). It has, as the source of its funds, insurance premiums and assessments from insured associations. 31 U.S.C. § 9001. These funds, with the exception of amounts needed for operations or investments pursuant to 12 U.S.C. § 1725(d), are held in a special account by the Secretary of the Treasury. 31 U.S.C. § 9107(b). The corporation’s reserves are not covered in the General Treasury of the United States as miscellaneous receipts nor are funds deposited by the FSLIC available for general expenditures. Congress also provides the FSLIC with the necessary authority to make a non-administrative expenditures out of its reserves. Title III (98 Stat. 1213) Pub.Law 98-371 (July 18, 1984). By definition, a counterclaim for recoupment requires that the claim, if satisfied, will reduce, defeat or diminish the government’s recovery of damages. See FDIC v. Lattimore, 656 F.2d 139, 143, n. 4 (5th Cir.1981), quoting Frederick v. United States, 386 F.2d 481, 488 (5th Cir.1967). Were the FSLIC to recover compensatory damages, these funds would be deposited in an account available for use only by the FSLIC. They would not inure to the benefit of the United States nor would any losses arising from this litigation be borne by the United States. The public treasury will not be affected by the success or failure of the plaintiff in this litigation, see Lapadula, 563 F.Supp. at 784; nor would the success of the defendants’ counterclaim reduce, defeat, or diminish any recovery of damages by the United States. Lattimore, 656 F.2d at 143, n. 4. In sum, the United States is not the plaintiff in this case. See Hughes, 701 F.2d at 58; Stewart, 655 F.2d at 742; Lapadula, 563 F.Supp. at 784. Nor is it an appropriate party to this action because the success of the FSLIC in prosecuting this case would not inure to the benefit of the sovereign in a legally sufficient and direct way, see Dugan, 372 U.S. at 611, 83 S.Ct. at 1001; Blake Construction, 419 F.2d at 312; Marcus Gravey Square, 595 F.2d at 1131, nor would the success of the defendants’ counterclaim defeat or diminish its recovery of any damages. FDIC v. Lattimore, 656 F.2d at 143, n. 4. Thus, defendants have not presented a counterclaim “in the nature of recoupment” and the United States will not be deemed to have waived its sovereign immunity because it has been initiated a suit in which it has a legally cognizable interest. 3. Defendants’ Allegations Fail To State a Claim Upon Which Relief May Be Granted a. The United States, Through the FSLIC, Owes No Actionable Tort Duty The United States, through the FSLIC, owes no actionable tort duty to advise' or assist member associations in conforming to federal regulations; nor does it owe a duty to preserve the confidentiality of the internal affairs of member associations. Counts I and III of the defendants’ counterclaim allege that such duties were owed to County by the FSLIC and the United States. Two theories are generally offered to justify imposing these duties on federal regulatory agencies. It is argued that a duty is implied from the statutory obligations imposed upon regulatory agencies and that a duty of care derives from specific actions undertaken by an agency during its supervision and regulation of those institutions for which it is responsible. In re Franklin National Bank Securities Litigation, 478 F.Supp. at 214. However, in this case, the FSLIC was under no statutory duty of care, nor is there any indication that it had undertaken responsibility for the day-to-day activities at County. Federal courts have generally found that applicable federal statutes and regulations create ho actionable duty to the regulated institutions. See, e.g., First National Bank of Hudson County v. United States of America, 599 F.2d 558 (3d Cir. 1979); Harmsen v. Smith, 586 F.2d 156 (9th Cir.1978); Social Security Administration Baltimore Federal Credit Union v. United States, 138 F.Supp. 639 (D.Md. 1956). In George Byers Sons, Inc. v. East Europe Import Export, Inc., 463 F.Supp. 135 (D.Md.1979), this Court stated that no cause of action will lie against the United States under the FTCA where the claim is based on a violation of a federal statute or regulation, absent a violation of some other common law duty. Id. at 137, citing Devlin Lumber and Supply Corp. v. United States, 488 F.2d 88, 89 (4th Cir.1973). Moreover, the regulations governing the FSLIC provide that: [W]hen, in his [the Supervising Agent] opinion, such action should be taken, he shall advise and endeavor to assist Federal Savings and Loan Associations and other insured institutions in his Bank district to conduct their operations in conformity with the statutes and the rules and regulations governing them, (emphasis added). 12 C.F.R. § 501.11. This regulation expressly reserves in the supervising agent discretion in deciding whether or not to take action concerning an individual association. Generally, the statutory grant of authority to the FSLIC gives the agency broad discretion in deciding when advice should be rendered to a member institution and whether an association is engaging in unsafe and unsound practices. See 12 U.S.C. § 1725 et seq. Such judgments are to be left to the expertise of the agency in which Congress entrusted these decisions. Thus, the FSLIC is under no affirmative duty imposed by statute or by its own regulations, to take any particular action at a specific point in' time for the benefit of an insured association. The FSLIC’s role is regulatory in nature, and its actions concerning member institutions are primarily discretionary. Similarly, the allegations in Count III of the counterclaim do not subject the United States to liability through the FSLIC. Another regulation applicable to the FSLIC provides that: Except as authorized by this part or otherwise by the Board, no officer, employee, or agent of the Board ... shall disclose or permit the disclosure of any unpublished information of the Board to anyone____(emphasis added).' 12 C.F.R. § 505.5(c). Again the applicable regulation gives the agency broad discretion in authorizing the disclosure of information regarding its insured associations. Here, the FSLIC acted within its discretionary powers when it determined which information, if any, should be disclosed to perspective merger partners during the bidding and negotiation process. The relevant statutes and regulations indicate that such determinations by the agency are discretionary. Furthermore, no cause of action arises because the FSLIC did not exceed its normal regulatory function. Although some federal courts have held that an actionable duty is created if the government goes beyond its normal regulatory activities and substitutes its decisions for those of the bank’s directors and officers and “if the bank ... directors reasonably rely ...” thereupon, In re Franklin National Bank Securities Litigation, 445 F.Supp. at 733-34, no actionable duty is attributable to the FSLIC as there is no indication in the record that the FSLIC assumed such extensive control over County’s operations. In In re Franklin National Bank Securities Litigation, the court identified “the government’s recommendations for changing procedures ...; the numerous examinations the FDIC’s close supervision of possible merger discussions ...; [and] the demands for changes in key management positions,” 478 F.Supp. at 218, as examples of activities consistent with normal regulation. The allegations against the FSLIC in the defendants’ counterclaim do not reveal conduct on the part of the agency which constitutes an assumption of control over County’s operations which would give rise to an actionable duty to advise and assist the association in conforming its practices to federal regulations. Instead, many of FSLIC’s alleged undertakings are similar, if not the same as those activities identified by the court in In re Franklin National Bank Securities Litigation as being consistent with normal regulation. Id. at 218. Courts, have also declined to find that an actionable duty is owed incident to banking investigations, examinations, or regulatory supervision. In Social Security Administration Baltimore Federal Credit Union, 138 F.Supp. at 639, the plaintiff argued that it was owed a duty to use reasonable care in conducting examinations and issuing reports by the United States through its Bureau of Federal Credit Union. The court reviewed the purpose of the banking examinations and held that such investigations and examinations “are not made as a service to the bank or to the credit union.” Id. at 646. Similarly, in First National Bank of Hudson County, 599 F.2d at 558, a bank brought an action against the United States alleging that the FDIC was negligent in its regulatory activities. As do the defendants in this case, the plaintiff bank in First National Bank of Hudson County argued that the statute creating the FDIC and assumption by FDIC of a supervisory role over the bank mandated a duty of care to that institution. The court concluded, however, that no such duty existed, suggesting instead that bank examinations and investigations are not “services” and that the performance of an examination did not create a specific relationship to, or control of, the bank. Id. at 562-63. Similarly, the Ninth Circuit has also held that the directors of a defunct bank could not maintain actions for indemnity against the United States for the alleged negligence of the Comptroller in conducting bank examinations. Harmsen, 586 F.2d at 158. The court supported its finding by noting that the federal scheme of banking regulation created no duty to shareholders or directors of- the individual banks. Id. See also Social Security Administration Baltimore Federal Credit