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FDIC to implement enforcement actions in Georgia, the effect of which would be to make public a number of previously unpublished consent orders from regulators demanding improvements at various community banks.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.”
A Letter to our Clients and Friends in the Financial Institutions Industry (Spring 2012)
Walt Moeling and Jim McAlpin spoke at the 2012 Acquire or Be Acquired Conference sponsored by Bank Director Magazine. Their topic was “The Path to Recovery – Building Value in a Changing Environment.” In preparation for their presentation at the AOBA conference, Walt and Jim surveyed a group of leading industry observers to obtain their insights. (A printer-friendly version of the Letter to Clients is also available.)
We thought you would be interested in what we heard this year in response to these questions, and the following is an excerpt from Walt’s and Jim’s presentation at the AOBA Conference:
Background
6,800 commercial banks (91% of all U.S. banks) have assets of less than $1 billion. Only 560 banks have assets between $1 billion and $10 billion, and only 106 institutions have assets greater than $10 billion. 2,500 banks (33% of all U.S. banks) have assets less than $100 million.
Both ROE and ROA for banks with less than $10 billion in assets improved in 2011, but still were about 65% to 70% of historical averages.
Economists surveyed by The Wall Street Journal expect U.S. GDP growth of just 2.3% for 2012. [The Wall Street Journal, December 22, 2011.]
2012 Bryan Cave Survey
We surveyed 50 industry thought leaders, including bank consultants and advisers, investment bankers and partners at private equity firms. We asked them to look forward over the next few years and give us their thoughts on factors considered by bankers and boards of directors when conducting strategic planning. We received more than 40 responses from across the country. Many of our respondents have allowed us to share their comments either with attribution or anonymously.
“What will be the pace of growth in the U.S. economy and in bank assets over the next 3 years?”
Survey respondents consistently predicted the pace of growth in the U.S. economy over the next 3 years to be between 2% and 3%.
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.
Although service to clients will always remain more important than peer reviews, we are proud to announce that partners Walt Moeling, Kathryn Knudson and Jim McAlpin were each selected for inclusion as bank regulatory attorneys in Georgia Super Lawyers 2012. Walt was further honored as one of the Top 100 attorneys in Georgia, while Kathryn was selected as one of the Top 50 female attorneys in Georgia. In all, attorneys in Bryan Cave’s financial institutions practice constituted half of the bank regulatory attorneys identified as Super Lawyers in Georgia. In addition, partner Rob Klingler was named to the Georgia “Rising Stars” list for 2012.
Super Lawyers lists the top 5 percent of attorneys in a state or region who have attained a high level of recognition and professional achievement. Honorees are identified through peer surveys, independent research and a blue-ribbon panel review. “Rising Stars” are chosen by their peers as being among the top up-and-coming lawyers (40 years old or younger, or in practice 10 years or less). Only 2.5 percent of the lawyers in the state were selected.
In total, 28 Bryan Cave lawyers in the Atlanta office were named Georgia Super Lawyers and an additional 11 were named “Rising Stars.” A complete list of Bryan Cave’s Super Lawyers and Rising Stars is available here.
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.”
On January 29, 2011, Bryan Cave partners Jim McAlpin and Walt Moeling presented at the 2012 Bank Director Acquire or Be Acquired conference in Phoenix, Arizona. Their presentation was titled, “The Path to Recovery – Building Value in a Changing Environment.”
The presentation includes an overview of the results of the 2012 Bryan Cave Survey of investment bankers and bank consultants to assist in providing strategic advice to clients. A sampling of results include:
- “In my opinion, the calendar just needs to turn another 3 to 6 more months and more signs of credit stabilization just need to naturally occur. We think folks will be pleasantly surprised to see the natural “mating process” happen on its own in 2012. [This will] start really slow but moderately gain momentum as 2013 unfolds, and by 2014 it will be a great deal different.” – Chris Marinac, FIG Partners
- “Failed bank opportunities need to disappear (still two more years of this in the Southeast); more healthy buyers need to appear; private equity will become much more involved; buyers prices need to improve; Banks with TARP will likely have to sell as capital markets will not open up in time.” – Bill Wagner, Raymond James
- “Dominate its ‘micro’ market as it relates to deposits and their lending competency and try to achieve critical mass (~$750m).” – Jeff Brand, KBW
- “Sometimes the blocking and tackling basics are a competitive advantage – provide the services desired on par with the big banks with care and concern.” – Phil Moore, Porter Keadle Moore
A copy of their PowerPoint presentation is now available online.
Bryan Cave is pleased to once again serve as a sponsor of 16th Annual Southeastern Bank Management & Directors Conference, hosted by UGA’s Terry College of Business on February 9, 2012. The conference’s theme for this year is “Banks & Emerging Retail Payments Systems: Opportunity or Threat?” and this year’s keynote speaker will be E. Robinson McCraw, CEO and Chairman of Renasant Bank.
Topics will include Regulations in Payment Systems, Monetizing Payments and Non-Lending Activities, the Retail Landscape, Getting Management and Your Board to think about Payments, and Evolving Accounting Standards and Compensation Policies. Download the conference agenda or information sheet.
The long-term impact of payment systems on community banks remains unpredictable, but one fact is indisputable – change is coming and banks need to be nimble, embrace technology and understand their customers’ preferences if they want to thrive in the new environment. This conference addresses an approach to extending the vitality of your bank.
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.