With attorneys and staff worldwide, Bryan Cave attorneys are often quoted in the news. Recent Media Mentions of Financial Institutions Group attorneys include:
Blanchard in ABA Banking Journal, Atlanta Journal-Constitution
Atlanta partner Jerry Blanchard authored an article April 13, in the ABA Banking Journal regarding recent cases that could spur review of “tried and true” loan contracts. Blanchard gave an overview of the recent $75 million judgment against Delta Community Credit Union in Georgia. Click here to read the full article. He was quoted April 8 in The Atlanta Journal-Constitution regarding the FDIC’s decision to seek penalties against certain officials of failed Georgia banks in instances where alleged malfeasance, not failed strategies, led to the bank’s failure. Speaking in general about failed bank litigation, Blanchard said he expects most cases to be settled before ever reaching trial. “Most failed Georgia banks collapsed because of betting too heavily on a housing and commercial real estate bubble that burst, not because of intentional wrongdoing,” Blanchard said. Click here to read the full article.
Hightower in Bank Safety & Soundness Advisor
Atlanta attorney Jonathan Hightower was quoted April 2 in the Bank Safety & Soundness Advisor regarding plans by the FDIC to implement enforcement actions in Georgia, the effect of which would be to make public a number of previously unpublished consent orders from regulators demanding improvements at various community banks. “The publicity of the orders at a time like this is unfortunate to say the least,” Hightower said. “The public’s perception of a consent order can be much worse than the reality. It’s troubling when a bank working successfully for a period of time gets new publicity for the same consent order. The public perception may be that its ability to survive is in question.”
Klingler in Bank Safety & Soundness Advisor
Atlanta partner Robert Klingler was quoted April 2 in the Bank Safety & Soundness Advisor concerning the JOBS (Jumpstart Our Business Startups) Act. The bill will impact community banks by dramatically increasing the number of shareholders a company can have before it is required to register with the Securities and Exchange Commission (SEC) — which brings with it numerous costly and time-consuming reporting requirements. “If passed, this could cause a significant number of community banks to reconsider whether SEC registration is an appropriate cost for their shareholders, and may enable a significant number of public bank holding companies to ‘go dark’ without engaging in a ‘going private’ transaction, while also increasing the possibility of larger institutions that may exceed the new 1,200 trigger considering a going private transaction,” Klingler is quoted as writing in a client alert.
Moeling in American Banker
Atlanta partner Walt Moeling was quoted April 13 by American Banker regarding the Jumpstart Our Business Startups Act, which President Obama signed into law earlier this month. It allows companies to deregister from the Securities and Exchange Commission if they have 1,200 or fewer shareholders, compared to the previous threshold of 300. Industry observers say more than 500 banking companies could take advantage of the change. Moeling said deregistration could be a good thing for many banks. “I’ve always considered the proxy statements for reporting companies to be a major impediment to getting information to shareholders,” he said. “It takes too long and is artificial. You have to be so cautious about what you say.” Moeling said while the fighting might be juicier without SEC oversight, it won’t necessarily be nastier.” I don’t think it will rise to the level of presidential campaigning,” he said. “Even without the SEC review, it will still be fairly civilized.”
With attorneys and staff worldwide, Bryan Cave attorneys are often quoted in the news. Recent Media Mentions of Financial Institutions Group attorneys include:
Klingler in American Banker
Atlanta Partner Robert Klingler was quoted March 15 in American Banker regarding an agreement reached between the U.S. Treasury Department and Pacific Capital. UnionBanCal has agreed to buy Pacific Capital for $1.5 billion in cash, with the Treasury getting about $165 million in exchange for its 11 percent stake. That would be about 90 cents on the dollar of the bailout money the Treasury invested in Pacific Capital through the Troubled Asset Relief Program. Klingler said the deal is probably a good one for the Treasury. “The ability to recoup an investment that is stressed at its face value is extremely difficult,” Klingler said. “If the bank goes into receivership, the Treasury is looking at pennies — and that might be generous. So the Treasury has shown a willingness to strike a deal that makes it more likely for the company to either find new capital or someone willing to acquire it.”
Moeling in SNL
Atlanta Partner Walt Moeling was quoted March 8 by SNL Financial regarding the fact that the FDIC increasingly has asked those bidding on failed banks to up their offers in order to help stem losses to the deposit insurance fund. The practice is called “the best and final round” and has been used in 14 failed-bank transactions since July 2011. The best and final round of bidding is a case of the FDIC acting like a “businessperson,” Moeling said. “They’re charged with getting the best price. They’ve done this some all along. I don’t think it’s truly exceptional but I think they’re very focused on the fact that they have a deposit insurance fund valuation issue here.” Click here to read the full article.
Blanchard in Safety and Soundness Report
Atlanta Partner Jerry Blanchard was quoted extensively March 5 in The Safety and Soundness Report regarding Pearson v. Delta Credit Union. Delta Credit Union in Atlanta was hit with a $75.4 million damage award in a lawsuit filed by a Florida developer. The two sides disagreed over what various terms of the loan documents meant, including whether the promissory note in question constituted a demand note. Commentators suggested that some of the problems could have been adverted by more artful contract drafting. Blanchard pointed out that if a note is called a demand note but contains terms and conditions that more closely resemble a term note there is a substantial risk that a court might conclude the parties entered into a term loan rather than a loan payable on demand.
With offices all over the world, Bryan Cave attorneys are often quoted in the news. Recent Media Mentions of Financial Institutions Group attorneys include:
Andreassen, Hester in Bank Safety & Soundness Advisor
DC Associate Kristine Andreassen and Atlanta Associate Barry Hester were quoted extensively Feb. 20 by The Bank Safety & Soundness Advisor concerning recently revised guidance from the FDIC that, among other things, attempts to keep unsteady community banks from taking too much payment processor risk. The revised guidance doesn’t contain anything “shocking,” but it does signal that payment processing will be a higher exam priority, Andreassen said. Hester confirmed that payment processors are increasingly approaching banks with offers that are too good to be true. “There are more legitimate payment processing systems and methods out there – a lot of excellent opportunities,” but banks need to take the time to properly vet these partnerships, he told the publication.
Atkinson in Charlotte Observer
Charlotte Partner B.T. Atkinson was quoted Feb. 21 by The Charlotte Observer concerning the federal government’s desire to end the politically unpopular Troubled Asset Relief Program. The government cannot force banks to repay TARP funds early under the terms of the capital investments brokered at the height of the financial crisis. To extricate itself, the Treasury is considering selling its stakes to third parties or restructuring their terms. Atkinson said it is more likely that the government would sell its TARP stakes, possibly at auction. He said the Treasury could move forward as early as the third quarter. Click here to read the full article.
Moeling in Atlanta Journal-Constitution
Atlanta Partner Walt Moeling was quoted February 19 in The Atlanta Journal-Constitution regarding the impact of the deteriorating economy on the small businesses and banks of Henry County, Ga. Once among the nation’s fastest-growing counties, Henry is now the largest county in Georgia without a hometown bank. All five locally owned banks failed during the economic downturn.
With offices all over the world, Bryan Cave attorneys are often quoted in the news. Recent Media Mentions of Financial Institutions Group attorneys include:
Walt Moeling in the American Banker
Walt Moeling was quoted January 27 by American Banker concerning the possibility of bank failures in Tennessee. Regulators had not seized a single bank in the state since 2002. During the recent financial crisis, Tennessee benefited from a relatively stable economy and a state banking commissioner with a reputation for doing his best to keep banks from failing. Walt indicated in the article that Tennessee’s avoidance of failure was likely to end soon, and it did later that day with BankEast and Tennessee Commerce Bank being placed into receivership. Data shows Tennessee is sixth on a list of states with the most banks at risk of failing. “The pangs are now spreading to other states,” Moeling said. “Tennessee has been immune so far, but nobody is immune to a four-year recession.”
With offices all over the world, Bryan Cave attorneys are often quoted in the news. Recent Media Mentions of Financial Institutions Group attorneys include:
Blanchard in GBA Bulletin
Atlanta Partners Jerry Blanchard, Nicole Wade and Associate Wendy Godfrey were highlighted in the December 16, 2011 Georgia Bankers Association (GBA) e-bulletin for their participation in a recent panel discussion at the 2011 GBA Credit Conference, held in Atlanta, Ga. The forum focused on current developments in foreclosure and problem loan collections in Georgia. Participants at the conference included senior lenders from around the state. Click here to read more about the discussion in the GBA e-bulletin.
Rinearson in Forbes, Wall Street Journal Online
New York Partner Judith Rinearson was quoted January 5 by Forbes online and January 6 by The Wall Street Journal online regarding the controversial appointment of Richard Cordray to head the new U.S. Consumer Financial Protection Bureau (CFPB). Cordray, a former Ohio attorney general, was President Barack Obama’s pick to head the CFPB, a watchdog group created by last year’s financial law. But for months, Senate Republicans had refused to confirm him — or anyone — to the post. Obama used his executive constitutional power to appoint Cordray while Congress was in recess. The Senate GOP says the chamber was not fully in recess, and that Obama had no right to push through a “recess” appointment. One interesting aspect of the appointment is how it will impact non-banks. “It’s generally acknowledged that the CFPB has power to oversee banks but what’s interesting is what this oversight means for nonbanks,” Rinearson told Forbes. Click here to read the full piece.
With offices all over the world, Bryan Cave attorneys are often quoted in the news. Recent Media Mentions of Financial Institutions Group attorneys include:
Hightower on BankDirector.com
Atlanta Associate Jonathan Hightower authored an article Nov. 18 for BankDirector.com concerning the pitfalls for banks negotiating lease renewals with insiders. “During the mid-2000s, it was commonplace for a bank, particularly a de novo bank, to lease some or all of their bank facilities from an entity controlled by the bank’s directors,” he wrote. “Most bank directors understand their duty to act in the best interests of the bank, but they are also facing personal financial exposure if the lease is not renewed on terms that allow the [director-owned] entity to continue to service its debt obligations. In addition, given public scrutiny of directors and officers who are perceived to have profited at the expense of the bank they serve, creating a proper process to manage these situations has never been more important.” Click here to read the full article.
McAlpin on BankDirector.com
Atlanta Partner Jim McAlpin authored the second article in a series on “best practices” for bank directors Dec. 2 for BankDirector.com. ”A bank board is like any other working group in that the direction and decisions of a board can be heavily influenced by members who dominate the conversation, or by members who actively discourage discussion or dissent,” wrote McAlpin, who offers tips to help all board members achieve meaningful participation. Click here to read the full article.
Moeling in Bank Director
Atlanta Partner Walt Moeling was quoted in the fourth quarter 2011 issue of Bank Director on challenges facing new directors now and in the near future. “Business plans become much more realistic when they start out with the big picture rather than “do we really want a Wal-Mart greeter in the lobby?” Moeling said. ”Are we going to build for five years and sell? Are we going to acquire? Are we going to stay local or expand?”
With offices all over the world, Bryan Cave attorneys are often quoted in the news. Recent Media Mentions of Financial Institutions Group attorneys include:
McAlpin on BankDirector.com
Atlanta Partner Jim McAlpin authored the first in a series of articles concerning best practices of bank boards Oct. 25 for BankDirector.com. McAlpin said “there has never been a greater need for well-functioning, informed and courageous boards of directors of banks and bank holding companies. There has also never been a more important time for board members to keep in mind that their responsibilities can be boiled down into one simple goal: the creation of sustainable long-term value for shareholders.” This also was the lead article in the BankDirector November e-mail newsletter. Click here to read the full text. The second installment in the series will be published by BankDirector in early December.
Moeling in American Banker, Atlanta Journal-Constitution
Atlanta Partner Walt Moeling was quoted at length Nov. 17 by American Banker regarding the new perception businesspeople have toward serving on a bank board. “Most of them joined because it is one of the great clubs in an area and there is an opportunity to help people in your community. But after four years of foreclosing on your neighbors, watching your friends lose their jobs and seeing your investment lose its value, you’re done,” said Moeling, adding that banks still can find local people to serve, but those directors will have to be prepared to roll up their sleeves a lot. “The compliance burden is huge. Regulators are going to expect directors to be on top of things. The meetings will be longer and more detailed. It will be a lot more demanding than it ever was in the past and it is not going to be as much fun.” He also was quoted Nov. 7 in The Atlanta Journal-Constitution concerning the reasons for the failure of Decatur First Bank in Decatur, Ga. The bank’s quest for growth (it opened subsidiary banks in the mid-2000s in the once-booming Lake Oconee area, about 80 miles east of Atlanta) provided a windfall for a few years until the housing market crashed.
ReVeal on BankDirector.com
DC Counsel John ReVeal was interviewed for two videos now being used on the BankDirector.com Web site. One video focuses on the Bank Secrecy Act (BSA) and how violations are perceived today by regulators. The other, which outlines what a bank board should know about BSA, has become the group’s official training piece concerning BSA and is located in a password-protected section. Click here to view ReVeal’s video on BSA and regulators.
With attorneys and staff worldwide, Bryan Cave often makes the news. Recent media mentions of attorneys in the Financial Institutions Group include:
Walt Moeling in SNL
Walt Moeling was quoted August 11 in an SNL blog post, a product of SNL Financial, regarding the slow down in bank failures (even as the problem bank list has shown no signs of shrinking). Moeling said a number of banks have nonperforming loans on their books that are current, but they have had time to write down the loans to levels closer to market values. In addition, some banks with a high likelihood of failing have recapitalized and should survive. “I think it’s strengthening. Banks that were really clamped down are coming out,” he said. “Not that all the problems are over. Some have bled so much that they’re not going to get a transfusion.”
John ReVeal in Bank Safety & Soundness Advisor
John ReVeal was quoted August 1 by the Bank Safety & Soundness Advisor concerning the final rule on preemption issued recently by the Office of the Comptroller of the Currency (OCC) — a last statement on what has been an opaque, legalistic debate carried out between the U.S. Treasury Department and the OCC. At stake were OCC powers that allow the agency to exempt (or preempt) national banks and thrifts from state consumer finance laws. Dodd–Frank legislation codifies what many consider to be a new, stricter standard. But does the Dodd-Frank standard compel the OCC to change its preemption standards? “What community banks can do is breath a momentary sigh of relief,” ReVeal said. “Preemption still exists. Everything we believed about preemption before Dodd-Frank is still true.” Now the OCC’s view will be tested in the courts. “We just need to watch the new laws and see how that plays out,” ReVeal noted.
With attorneys and staff worldwide, Bryan Cave often makes the news. Recent media mentions of attorneys in the Financial Institutions group include:
Walt Moeling in American Banker
Atlanta Partner Walt Moeling was quoted July 5 by American Banker regarding the recent drop in bank consent orders, formerly called cease-and-desist orders. Since the beginning of 2008, the Federal Deposit Insurance Corp. has issued 851 consent orders. The issuances peaked in November 2009, when the FDIC issued 51 consent orders. In May, just 10 banks entered into consent orders with the FDIC. “At this point, these banks should be getting a “Hallelujah” instead of a consent order,” Moeling said. “These are the survivors that are making it in a lousy market. It isn’t a reflection of the board’s performance, it’s a reflection of the market.” Click here to read the full article.
Judie Rinearson in PaybeforeLegal
New York Partner Judith Rinearson authored an article for the July edition of Paybefore Legal regarding key provisions of the Durbin Amendment to the Dodd-Frank Act. The Federal Reserve Board issued its much-anticipated final rule implementing the amendment on June 29. “And now the real work begins for the industry and its participants “changing programs, business models, disclosures, contracts and more to bring thousands of affected programs into compliance,” she wrote. “But before you can dig in, you need to know if your organization and its prepaid programs are covered by the Fed’s final rule. And if they are, what that means.” Rinearson’s article poses 13 questions to help clients identify whether their prepaid card program is eligible for the interchange exemption, fraud prevention adjustment and routing or exclusivity exemptions. Click here to read the article.
With attorneys and staff worldwide, Bryan Cave often makes the news. Recent media mentions of attorneys in the Financial Institutions group include:
Andreassen on Moneylaundering.com
DC Associate Kristine Andreassen was quoted June 7 by Moneylaundering.com regarding a report from the U.S. Senate Caucus on International Narcotics Control in which lawmakers criticize the U.S. Treasury Department for failing to adequately implement a portion of the Credit CARD Act of 2009. The lack of regulations governing the cross-border transportation of prepaid access products has hamstrung American efforts to combat Mexican drug-trafficking organizations, according to lawmakers. Andreassen said that the Financial Crimes Enforcement Network (FinCEN) ultimately must decide whether to require individuals carrying prepaid access devices to declare the actual or potential maximum value the products have before crossing the border. “One of the issues FinCEN has to account for is cards that cross the border empty, and are then reloaded on the other side,” she said.
Moeling in Atlanta Journal-Constitution, Bank Investment Consultant
Atlanta Partner Walt Moeling was quoted May 27 in The Atlanta Journal-Constitution regarding Georgia Rep. Greg Morris, who has been fined $5,000 by federal bank regulators after he made overdrafts not allowed because of his role as a bank director. Moeling said it’s a relatively minor violation. “Director overdrafts seldom impose any threat to the safety and soundness of a bank,” he said. “Nonetheless they are clear violations and the regulators will act when they find repeat offenders.” He also was quoted May 25 by Bank Investment Consultant regarding a growing group of acquisition-minded community banks, for whom fee-based businesses are looking like a more attractive way to bolster revenue than are traditional bank deals.
Rinearson in Franchise Law News
New York Partner Judith Rinearson authored an article in the current edition of Franchise Law News with tips on how to avoid the legal traps of promotional certificates. A spate of class-action lawsuits claim that the short expiration dates popular with “Groupon-like” gift certificate programs violate applicable laws. “Just because you are compliant with federal law, don’t think you are off the hook,” she cautioned. “With care in structuring these programs, and with good, clear disclosures in all marketing materials, these Groupon-like gift certificate programs can be a true win-win for both consumers and retailers.”