Anderson v. Abbott

In Anderson v. Abbott, 321 U.S. 349 (1944), the Supreme Court dealt with a suit against some of the shareholders of a bank holding company, 321 U.S. at 354, the only substantial asset of which was stock in its subsidiary banks. Id. at 358. By statute, stock in the banks carried "double liability," meaning that both the banks and their shareholders were liable to the depositors. Id. at 358-59. The Court held the shareholders of the holding company liable for the depositors' claims against the subsidiary banks because allowing the holding company to insulate them "would allow stockholders of banks to retain all of the benefits of ownership without the double liability which Congress had prescribed." Id. at 358.