The issue focused on the federal regulatory agency's expertise in providing legal advice on how to avoid courts and regulators shutting down an institution.


The legal services agency filed its appeal to the court after being sued by investment management firm VanEck Vectors in 2007. The suit alleged that the agency failed to create an electronic database that would help prevent the unintended lawsuits that resulted from the collapse of the financial giant Bear Stearns.


Lawyers said the lawsuit was made more complex because the litigation involved