Madeline A. Coblenz and William J. Mason - Page 11

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          remaining causes of action, and recommending the approval of the            
          settlement offer.  In a section entitled “AMOUNT OF CLAIM”, the             
          FDIC attorney stated that petitioner alleged that “he has been              
          damaged in the amount of the value of his stock in the radio                
          station asset”.  In a section entitled “CURRENT STATUS AND                  
          ESTIMATES”, the FDIC attorney stated that “this is a complicated            
          case involving many complex legal issues which could cause                  
          difficulty for a jury and, therefore, create uncertainty as to              
          the outcome.  It is clear that Mason plans to make an emotional             
          argument to the jury claiming he was the innocent party and * * *           
          [First City Bank] destroyed his dream of owning a radio station.”           
          The FDIC attorney, however, did not specifically address a harm             
          to business reputation claim.                                               
               On August 31, 1995, the FDIC approved the settlement offer.            
          Sometime after the FDIC approved the settlement, the FDIC                   
          attorney coordinated the drafting of a Mutual Settlement and                
          Indemnification Agreement (settlement agreement).  Before the               
          drafting of the settlement agreement, the FDIC attorney was not             
          aware of any claim by petitioner that First City Bank had harmed            
          his business reputation.  On September 8, 1995, the FDIC prepared           
          a check in the amount of $550,000, payable to petitioner.                   
          Drafting of the Settlement Agreement                                        
               The draft of the settlement agreement dated September 10,              
          1995, contained an introductory paragraph listing the parties               

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