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Do Banks Need a Holding Company?

April 21, 2017

Authors

Robert Klingler

Do Banks Need a Holding Company?

April 21, 2017

by: Robert Klingler

the-bank-accountOn April 11, 2017, Bank of the Ozarks announced that it would be completing an internal corporate reorganization to eliminate its holding company.  As a result, it will continue as a publicly-traded, stand-alone depository bank, without a bank holding company.

In this episode of The Bank Account, Jonathan and I discuss the advantages and disadvantages of the bank holding company structure.  Specific topics include:

  • praise for Bank of the Ozarks innovative approach to further improve its already impressive efficiency,
  • a review of the existing landscape of holding company and non-holding company structures,
  • activities that may require a holding company,
  • size-related thresholds impacting holding company analysis,
  • charter and corporate-governance related elements to the analysis, and
  • the impact
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Thoughts on Payment Systems for Banks

April 14, 2017

Authors

Robert Klingler

Thoughts on Payment Systems for Banks

April 14, 2017

by: Robert Klingler

the-bank-accountJonathan and I sat down with our colleague, Stan Koppel, on Thursday, April 13th to discuss the intersection of payment systems and banks.   Stan joined Bryan Cave LLP following a 28-year stint with VISA, where he was originally the third lawyer employed.  In this episode of The Bank Account, Stan shares his background and touches on what’s working now and what’s ahead in the payments world for financial institutions.

Topics covered include banking the unbanked, tokenization, the blockchain and machine learning!  Preview of a hot take from Stan… “blockchain is more distracting than disruptive.”

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Landscape of the U.S. Banking Industry

April 7, 2017

Authors

Robert Klingler and Jonathan Hightower

Landscape of the U.S. Banking Industry

April 7, 2017

by: Robert Klingler and Jonathan Hightower

(A print-ready version of this post is also available: Landscape of the U.S. Banking Industry.)

From 2006 through 2016, the number of insured depository institutions in the United States has fallen from 8,691 charters to 5,922, a decline of 2,769 charters or a 32% loss.  This headline loss number is worth talking about, but is neither news nor new.  The loss of charters is a frequent source of discussions around bank board rooms, stories from trade press, and chatter at banking conferences.  The number of insured charters has also been in steady decline, with at least 33 years of declining numbers.

However, a deeper dive into the numbers reveals some unexpected trends below the headline 32% loss of charters.

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Establishing a Sustainable Sales Culture

March 31, 2017

Authors

Robert Klingler

Establishing a Sustainable Sales Culture

March 31, 2017

by: Robert Klingler

the-bank-accountWalt Moeling joined us on March 29th for the latest episode of The Bank Account with a lively discussion of bank sales tactics.  In this regulatory environment, banks need to balance growth goals with expectations for scrutiny of their sales tactics.  Regulators, investors, the press and consumers are all paying more attention to bank sales tactics.

While none of us hopes to be asked whether we “want fries with that?” as we conduct business with a bank teller, looking out for potential bank products that could benefit the bank’s customers presents an opportunity for both the bank and the customer to be better off.

You can also follow us on Twitter with Walt (kind of) at @MoelingW, Jonathan at @HightowerBanks, and me

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Georgia on my Mind: Changes in Banking Laws

March 29, 2017

Authors

Robert Klingler

Georgia on my Mind: Changes in Banking Laws

March 29, 2017

by: Robert Klingler

the-bank-accountOn March 28, 2017, Jonathan and I sat down with Bryan Cave Colleagues Ken Achenbach and Crystal Homa in the latest episode of The Bank Account for a discussion focused on legislative changes in Georgia affecting banks, including modifications to Georgia’s business judgement rule and the Department of Banking & Finance’s Housekeeping Bill.

While the bills we discuss await the Governor’s signature (and subsequent effectiveness – July 1 for the business judgement rule change and 30 days after signature for the housekeeping bill), our team looks forward to the practical effect of these statutory changes.  As banking industry participants, we appreciate the efforts of the legislature to make Georgia an attractive state for banking.

As referenced in the

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The Strategic Approach to Vendor Negotiations

March 17, 2017

Authors

Robert Klingler

The Strategic Approach to Vendor Negotiations

March 17, 2017

by: Robert Klingler

the-bank-accountOn March 17, 2017, Jonathan and I sat down with Bryan Cave Partner Sean Christy in the latest episode of The Bank Account for a discussion of the FDIC’s Office of Inspector General’s Report on Technology Service Provider Contracts.  Before diving into the OIG report, Jonathan and I briefly discuss the potential impact on deposits with regard to the Federal Reserve’s latest increase in rates, the OCC’s draft supplement for fintech bank charters (and related BankBryanCave.com blog post), and the change in Federal Reserve policy lessening the examination of certain smaller bank mergers.

Sean is a partner in our Strategic Sourcing group, and has significant experience representing bank and other financial services providers in the negotiation of the their

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OCC Moves Forward on Fintech Bank Charters

March 16, 2017

Authors

Dan Wheeler and Jonathan Hightower

OCC Moves Forward on Fintech Bank Charters

March 16, 2017

by: Dan Wheeler and Jonathan Hightower

Amid criticism from virtually every possible constituency, on March 15, 2017, the Office of the Comptroller of the Currency (OCC) released a draft supplement  to its chartering licensing manual related to special purpose national banks leveraging financial technology, or fintech banks. As we indicated in our fintech webinar discussing the proposal last December, the OCC is proposing to apply many conventional requirements for new banks to the fintech charter. While the OCC’s approach is familiar to those of us well versed on the formation of new banks, there are a few interesting items of note to take away from the draft supplement.

  • More bank than technology firm. Potential applicants for a fintech charter should approach the project with the mindset that they are applying to become a bank using technology
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Riding the High Stock Price Wave

March 8, 2017

Authors

Robert Klingler

Riding the High Stock Price Wave

March 8, 2017

by: Robert Klingler

the-bank-accountOn March 7, 2017, Jonathan and I recorded lucky episode 13 of The Bank Account where we discussed the implications of stock prices, particularly in connection with bank mergers.  We note that the current levels of stock pricing in the banking sector appears to be driven by expectations for higher interest rates, tax reform, and regulatory relief, in that order of likelihood and importance.  We also note that if these expectations aren’t achieved, bank stock prices are likely to take a hit.

As mentioned on the podcast, Jonathan was recently quoted in an American Banker story on bank merger activity.

“We’re telling buyers to be aggressive and sellers to be thoughtful,” said Jonathan Hightower, a lawyer at Bryan Cave.

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Selling Your Mission to Shareholders

February 27, 2017

Authors

Robert Klingler

Selling Your Mission to Shareholders

February 27, 2017

by: Robert Klingler

the-bank-accountOn Friday, February 24, 2017, Jonathan sat down with our colleague, Kevin Strachan, to discuss ideas for banks to highlight community involvement in their shareholder meetings.  As mentioned during the podcast, I had the pleasure of judging the next generation of transactional lawyers at a LawMeets competition hosted by Emory Law School, but I enjoyed consuming this podcast as a listener.

Before diving into shareholder engagement, Jonathan and Kevin also comment briefly on the leaked Hensarling memo on version 2.0 of the Choice Act, and some of the “interesting” banking ideas expressed by Bruce Cahan, adjunct professor at Stanford University, on a recent American Banker podcast episode.

On this episode of The Bank Account, Jonathan and Kevin touch

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Roundtable on the Future of Retail Banking

February 12, 2017

Authors

Robert Klingler

Roundtable on the Future of Retail Banking

February 12, 2017

by: Robert Klingler

the-bank-accountOn Friday, February 10, 2017, Jonathan and I sat down with our partners, Jim McAlpin, head of Bryan Cave’s Financial Services practice, and Dan Wheeler, head of Bryan Cave’s Fintech practice, to discuss the impact of financial technology on retail banking.  Like branching strategies, there isn’t necessarily one universally correct strategy with how community banks should address financial technology, but ignoring fintech completely is unlikely to be a viable long-term strategy.

On this episode of The Bank Account, Jonathan, Jim, Dan and I explore some possible approaches for addressing fintech, and relay some of the reactions that we’ve heard from successful community banks.

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