Glendale Federal Bank, FSB v. United States

During the savings-and-loan crisis, the government asked healthy banks like Glendale Federal Bank (plaintiff) to absorb failing thrifts, promising favorable regulatory treatment and 40-year amortization of the resulting "goodwill" capital in exchange; when the government later breached that promise and required Glendale to raise additional capital, the Supreme Court in United States v. Winstar held the breach occurred but left damages to the Federal Court of Claims. Through multiple rounds of trial and appeal, Glendale ultimately sought both $381 million in "wounded bank" reliance damages and an additional $527 million in expectancy-model out-of-pocket losses tied to falling out of capital compliance; the Court of Claims rejected the $527 million claim as failing to measure actual losses but awarded the $381 million in reliance damages, and both sides appealed that final split.