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FDIC to implement enforcement actions in Georgia, the effect of which would be to make public a number of previously unpublished consent orders from regulators demanding improvements at various community banks.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.”

Bryan Cave attorney Jerry Blanchard will be among the panelists examining enterprise risk management at the 2012 SNL Community Bankers Conference. Other participants in the panel include Thomas Dujenski, the FDIC Atlanta Regional Director, David Ruffin of Credit Risk Management, LLC, and Bob Doby, Jr. of Yadkin Valley Bank. The panel will be moderated by SNL’s Shawn Ryan.

The SNL Community Bankers Conference focuses on how banks can adjust to the changing environment, mitigate risks, take advantage of genuine opportunities, and ultimately prosper.  It will be held May 3-4 at the Saddlebrook Resort in Tampa, Florida.  For more information, go to http://www.snlcenter.com/cbc/2012/default.asp.

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.

(more…)

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.

(more…)

Section 165(d) of the Dodd-Frank Wall Street Reform and Consumer Protection Act requires each nonbank financial company supervised by the Federal Reserve and each bank holding company having assets of $50 billion or more (a “Covered Company”) to develop what has commonly become referred to as a “living will,” essentially a plan of orderly liquidation (the “Resolution Plan”). The Federal Reserve and the FDIC published a proposed rule on March 29, 2011, to implement this provision. The proposed rule requires a Covered Company to provide its initial plan within 180 days from the effective date of the final rule or the date the entity becomes a Covered Company. Each Covered Company will then be required to submit an updated plan within 90 days of the end of each calendar year. Interim updates are required if an event occurs that might have a material impact on the Resolution Plan. The Resolution Plan must be submitted the Federal Reserve and the FDIC for their approval. The Plan must take into account what type of distress in the world financial markets might result in failure of the Covered Company and, most importantly, it must assume that the government will not provide any extraordinary support. The Resolution Plan must provide for the “rapid and orderly liquidation” of the Company and should include provisions that protect any FDIC insured institutions from risks created by nonbank subsidiaries of the Covered Company. It should also assess the feasibility of the Covered Company’s plan, including timelines, for executing any sales, divestitures, restructurings or other similar actions.

Editorial Comment: When the credit markets freeze and it is impossible to value financial assets, how exactly will a huge financial company liquidate itself in a “rapid and orderly” manner? A dearth of buyers in such a situation will make the liquidation impossible to accomplish in a short period of time and if it is accomplished it will likely be a very messy affair. An orderly liquidation really presumes that the credit markets are working normally and that the financial distress a large bank is suffering is restricted to it alone. In such a situation there would be willing buyers for the assets and the liquidation would not trigger a broader crisis. One suspects that any Resolution Plan will be much more aspirational in nature than a true blueprint for what to do in a financial panic.

Jerry Blanchard recently spoke to the national sales meeting of the Federal Home Loan Banks on the topic of How the Regulators View the FHLB’s.

The FHLB system has been a major source of liquidity to its over 8,000 members during the financial crisis and faces many challenges as the system deals with:

• shrinking demand for loan advances;
• losses incurred in mortgage backed securities that have led to a number of the FHLB’s having to enter into Consent Orders with  their primary regulator; and
• greater Congressional scrutiny of all government sponsored entities.

Banking regulators deal with the consequences of FHLB policies and actions when financial institutions are taken into receivership. In some instances, the availability of FHLB advances may have led to some banks to incurring more risk than they would  have otherwise  incurred.

Jerry’s presentation addressed how the banking regulators view the role of the FHLB ‘s and how those views might affect bank examinations in the future.  If you would like more information, a copy of Jerry’s FHLB presentation is available online, or reach out to Jerry Blanchard to discuss further.

On February 18, 2011, Rob Klingler gave the 2011 Regulatory and Legislative Update for the annual Banking and Finance Law presented by the Institute of Continuing Legal Education in Georgia.  A copy of the slides used in the presentation is available online.

Jerry Blanchard served as the program chair and gave an update on recent case law developments.  BT Atkinson also moderated a panel on Bank Acquisitions and Mergers in Non-Loss Share Transactions.  The seminar will also be available on the ICLE’s website as an archived online course, and is eligible for 6 Georgia CLE hours, including 1 trial practice hour.

With attorneys and staff worldwide, Bryan Cave often makes the news.  Recent media mentions of attorneys in the Financial Institutions group include:

Blanchard in Atlanta Business Chronicle

Atlanta Partner Jerry Blanchard was quoted Nov. 4 in the Atlanta Business Chronicle in connection with a resurgence of energy from Georgia banks. The state has suffered numerous bank failures, and even those that did not go under have in large part been hibernating during the recession. But now they are starting to look for capital again, he said. “To the extent that everybody has been looking for light at the end of the tunnel, this is a little light,” Blanchard said.

Klingler in Banker & Tradesman.

Atlanta Associate Robert Klingler was quoted extensively Oct. 18 in Banker & Tradesman on the good and bad that small banks have seen since accepting TARP funds. Banker & Tradesman is a banking trade publication out of Massachusetts.

Moeling in American Banker

Atlanta Partner Walt Moeling was quoted Nov. 4 by American Banker concerning an announcement by our client Brand Group Holdings Inc. that it will raise up to $200 million through affiliates of Carlyle Group, Stephens Group LLC and Nonami LLC, owned by the Cousins family in Atlanta. Analysts say the deal is the first time in years that private equity has made a big traditional investment in Georgia, rather than using shelf charters or failed banks. “We haven’t had a significant infusion of capital in any Atlanta-based community bank in three years, essentially,” Moeling said. “The banks that are still standing may be battered and bruised but, by God, they’re still standing and the biggest hits have been taken.” Click here to read the article, republished by Bank Investment Consultant. He also was quoted Oct. 27 by American Banker on Ameris Bank, one of the few homegrown banks in Georgia to have bid successfully on multiple failed banks. Ameris just made its fourth failed-bank purchase in the past year – notable given that Ameris has had eight consecutive quarters of net losses largely owing to credit deterioration in real estate-related loans. Analysts say the bank has become a serial acquirer by proving it can handle these takeovers in its recession-battered market.

With attorneys and staff worldwide, Bryan Cave attorneys often make the news.  Sometimes media mentions highlight the firm’s involvement with notable clients, sometimes the individual accomplishments of attorneys and staff.  Recent media mentions of attorneys in Bryan Cave’s financial institutions practice include:

With attorneys and staff worldwide, Bryan Cave attorneys often make the news.  Sometimes media mentions highlight the firm’s involvement with notable clients, sometimes the individual accomplishments of attorneys and staff.  Recent media mentions of attorneys in Bryan Cave’s financial institutions practice include:

Blanchard in Financial Industry Outlets

Atlanta Partner Jerry Blanchard was quoted Feb. 25 by Bank Info Security and Cuinfosecurity.com and Feb. 23 on Financial Fraud Law.com concerning the high number of banks and credit unions that continue to fail nationwide, despite what many see as a turnaround in the economy.

Moeling in Business Week, Atlanta Journal-Constitution

Atlanta Partner Walt Moeling was quoted Feb. 25 in a BusinessWeek/Bloomberg article regarding the new investment group BSE Management LLC, which hopes to raise $1 billion to buy failed lenders in the Southeast U.S. He also was quoted Feb. 28 in The Atlanta Journal-Constitution on what happens when FDIC officials arrive to take over a failing bank.