Was an enforceable contract between thrifts and the government formed which allowed for the inclusion of intangible assets to count as capital assets for a certain period of time?
“We conclude the thrifts’ contracts are enforceable against the government and that the government bargained to allow the thrifts to count certain intangible assets created in their mergers as capital assets for specified periods of time. The government later exercised its sovereign prerogative to enact legislation to limit the use of these intangible assets towards meeting capital requirements. Although the government was free to legislate, it remains liable for breach of contract where its legislation is directed at repudiating its prior contractual agreements. We conclude FIRREA repudiated the government’s agreements with the plaintiff thrifts.”
