MEMORANDUM OPINION AND ORDER
Plaintiffs American Insurance Association (AIA) and Alliance of American Insurers (AAI or Alliance), national trade associations representing companies engaged in property and casualty insurance, brought suit against the Office of the Comptroller of the Currency, the Acting Comptroller, and the United States ("Comptroller"), challenging a decision by the Comptroller allowing Citibank, N.A. ("Citibank") to offer municipal bond insurance through an operating subsidiary. Defendants and defendant-intervenor Citibank (collectively referred to hereinafter as "defendants") filed motions to dismiss for lack of standing. On September 17, 1985, the Court stayed further consideration of plaintiffs' motion for summary judgment pending a determination of their standing to maintain the suit. For the reasons set forth below, the Court concludes that plaintiff AIA possesses the requisite "stake in the outcome of the controversy" to establish standing, that defendants' motions to dismiss should therefore be denied, and that the stay issued on September 17 should be lifted.
In a ruling issued May 2, 1985, the Comptroller approved Citibank's proposal to establish an operating subsidiary to issue standby credits for municipal bonds in the form of municipal bond insurance. That subsidiary opened for business on July 1, 1985. Plaintiffs filed suit in this Court for declaratory and injunctive relief on May 9, claiming that the Comptroller's approval was arbitrary and capricious, and would result in violations of the Bank Holding Company Act, 12 U.S.C. §§ 1841 et seq., the National Bank Act, 12 U.S.C. § 24, and the McFadden Act, 12 U.S.C. §§ 36 and 81.
Plaintiff AIA consists of 174 member companies. Affidavit of William L. Martin at para. 2, Appended to Plaintiff's Memorandum of Points and Authorities in Opposition to Defendants' Motions to Dismiss ("Plaintiffs' Opposition"). Of these, three members -- the Travelers Indemnity Company, the Aetna Casualty and Surety Company, and Aetna Insurance Company -- participate in a consortium called the Municipal Bond Insurance Association, which underwrites and sells municipal bond insurance. A fourth member, the United States Fidelity and Guaranty Company, engages directly in the municipal bond insurance business, independent of any group or consortium. Id. at para. 8. Defendants maintain that with only four out of a total of 174 members engaged in municipal bond insurance, plaintiff AIA lacks any meaningful relationship to the municipal bond insurance market, and that the interests it seeks to protect or advance in this lawsuit are not germane to its purposes. They insist, therefore, that plaintiff lacks standing to bring this action.
It is well settled that "an association may have standing solely as the representative of its members." Warth v. Seldin, 422 U.S. 490, 511, 45 L. Ed. 2d 343, 95 S. Ct. 2197 (1975). To establish such "associational" or "representational" standing, the association must demonstrate that:
(a) its members would otherwise have standing to sue in their own right; (b) the interests it seeks to protect are germane to the organization's purpose; and (c) neither the claim asserted nor the relief requested requires the participation of individual members in the lawsuit.