Media Mentions – December 6, 2013

December 6, 2013

Authored by: Bryan Cave

With attorneys and staff worldwide, Bryan Cave attorneys are often quoted in the news.  Recent Media Mentions of Financial Institutions Group attorneys include:

Katherine Koops in Western Independent Banker

Atlanta Counsel Katherine Koops authored an article for the November/December edition of Western Independent Banker regarding the Federal Reserve Board of Governors’ approval of a final rule implementing the Basel III higher minimum capital standards for most banking organizations.  Click here to read her full article on the new capital rules.

Walt Moeling in American Banker

Atlanta partner Walt Moeling was quoted Nov. 27 by American Banker concerning the recent acquisition of Freedom Bank by Heartland Financial USA. Executives at Heartland have remained vague about their reason for the acquisition, but observers say it seems like a trade-off. River Valley Bancorp, the former owner of Freedom, may have used it as payment of a debt to Heartland. If Heartland did take a bank as payment, it may have been a good move because it is dealing with a multibank holding company rather than stakeholders like the Treasury Department or the holders of trust-preferred securities. “It can be an easy way to resolve a debt,” Moeling said. “But when you are dealing with a one-bank holding company, that is all there is, so there is not a lot of room to negotiate. … This also sounds like a cleaner situation – when you throw in Tarp or trups and try to strike a three- or four-way settlement, oh my God, it gets difficult.”

Michael Shumaker in Bank Safety & Soundness Advisor

Atlanta Associate Michael Shumaker was quoted Nov. 4 by the Bank Safety & Soundness Advisor on new third-party vendor guidance from the Office of the Comptroller of the Currency (OCC). The OCC recently published a detailed overhaul of its 12-year-old guidance on third-party relationships, significantly raising expectations for community banks and other institutions while reflecting heightened regulatory concern over the risks that the relationships pose. “The sound of this tome hitting the desk should alert banks and thrifts to the increased regulatory expectations for vendor management,” Shumaker said. “Banks should understand the increased diligence required to manage their third party risk in a safe and sound manner. “Regulators have seen bad performances by vendors during the crisis that increased the risk profile of banks. Now, banks should take a more critical look at their vendor relationships and work to move or re-negotiate the related contracts, when up for renewal, to comply with the guidance.”