Mr. Chairman, and distinguished members of this Committee, I appreciate this invitation to  present testimony on how the D'Oench Duhme Doctrine, and its statutory analogue, 12 U.S.C. 1823(e), Currently operate in failed bank litigation and how they should be reformed to prevent injustice to thousands of innocent borrowers, creditors and service providers across the Country. I applaud your concern and your willingness to address this issue that has plagued so many individuals in the aftermath of the recent banking crisis and S&L debacle. Before critisizing the application of the D'Oench Doctrine and addressing the manner in which it should be reformed in order to trim the unnecessary and unfair power of federal bureaucracies over individuals, I briefly want to address the legal and financial framework in which it arises.

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