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.
McAlpin in Bank Director Magazine
Atlanta Partner Jim McAlpin was quoted extensively in the first-quarter issue of Bank Director Magazine on best governance practices for bank boards in the featured article, “WAR GAMES.” In the article, McAlpin noted the importance of engaging in proactive strategic planning, recommending that a board have a meeting specifically for strategic planning once a year. “I think it’s really important for every member of a board of directors to be able to articulate in concrete and simple sentences what the direction of the bank is. If your board can’t do that, you’re not engaging in enough strategic planning.” Click here to read the full article.
Andreassen in Paybefore Legal
DC Associate Kristine Andreassen authored the lead article in the March edition of Paybefore Legal regarding proposed rulemaking issued recently by FinCEN (the Financial Crimes Enforcement Network). “Although the federal banking agencies already generally expect appropriate and adequate customer due diligence (CDD) policies, procedures and processes, FinCEN intends to clarify, consolidate and harmonize the agencies’ minimum expectations in this regard,” she wrote. “Prepaid cards are not discussed specifically in the advance notice of proposed rulemaking (ANPRM), but should FinCEN adopt a rule with CDD and beneficial ownership requirements as suggested in the ANPRM, prepaid card issuers, as well as providers and sellers of rpepaid access, could be affected in a significant way.” Andreassen is a Paybefore contributing editor.
Moeling in Birmingham Business Journal, Atlanta Journal-Constitution
Atlanta Partner Walt Moeling was quoted March 2 by the Birmingham Business Journal and February 25 by The Atlanta Journal-Constitution regarding PNC Financial Services Group, which announced last summer it would acquire the U.S. retail banking operations of Royal Bank of Canada, including those in Atlanta and Birmingham. Moeling said Birmingham’s banking industry is too competitive for PNC’s entrance to shake things up. “Birmingham has been served well by both large and small banks,” he told the Birmingham Business Journal. “PNC will have to compete to hold its existing customers against competition. They should be able to because they’re a very good bank. But I don’t think there will be any waters parting as they arrive.”