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Summary of New UK Tax on Bank Bonuses

By Rob Klingler - Thursday, December 10, 2009

Our London office just published an alert on the United Kingdom’s new 50% Bank Payroll Tax.  While not directly relevant for most U.S. banks (although it does apply to U.S. banks with U.K offices), it does serve as a strong reminder of the international focus on bank compensation.  We understand that France has announced that it intends to introduce a similar tax.

The U.K. Government announced on December 9, 2009, that the award of bonuses to bank employees will render the bank liable to a new “bank payroll tax” through April 5, 2010.   The amount of the tax will be equal to 50% of the amount by which the bonus (or aggregate bonuses) awarded to the particular employee, in that period, exceeds £25,000.  The tax referable to all such awards will be payable in one lump sum on 31 August 2010.  The Government has however reserved the right to extend the period of the charge, and keep the tax in place until certain regulatory changes affecting banks have come into force.

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November 2009 Client Alerts

By Stan Santos - Monday, November 30, 2009

The FTC Postpones the Deadline for Red Flags Rule Compliance Again to June 1, 2010

In a last minute announcement, the Federal Trade Commission has indicated that it will delay the compliance date for the “Red Flags Rule” yet again. Affected businesses now have until June 1, 2010 to develop and implement a plan as required under the Red Flags Rule.

For more information, please read the client alert published by Bryan Cave LLP’s Consumer Protection Client Service Group on November 2, 2009.

EEOC Releases New Workplace Poster

The Equal Employment Opportunity Commission announced last week that it has revised and released for posting the notice that employers covered by federal anti-discrimination laws must display in the workplace.

For more information, please read the client alert published by Bryan Cave LLP’s Labor and Employment Client Service Group on November 2, 2009.

House Unveils Health Reform Bill

The U.S. House of Representatives has unveiled its health reform legislation. Among its provisions include an excise tax on medical devices that is expected to cost the industry $20 billion over the next ten years. The bill also requires device manufacturers to submit the product information to a national registry.

For more information, please read the client alert published by Bryan Cave LLP’s Food and Drug Administration Practice on November 3, 2009.

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Community Bank “GIVE” Awards Accepting Entries

By Rob Klingler - Monday, August 31, 2009

Entries are now being accepted for the first annual Southeast Community Bank “GIVE” Awards. The awards will recognize community banks across the Southeast who have launched exceptional community service efforts in the past year. “GIVE” stands for charitable Giving, community Involvement, Volunteerism and employee Engagement.

Atlanta accounting firm Porter Keadle Moore, LLP (PKM) is hosting the awards, with sponsorship assistance from law firm Bryan Cave Powell Goldstein, FIG Partners LLC as well as community bank technology delivery partners Banker’s Dashboard, and Fidelity National Information Services.

“Especially in the current economic climate, it is important to recognize locally-owned and operated financial institutions for what they do to strengthen the surrounding community,” remarked PKM partner Sal Inserra.

Candidates must be headquartered in Alabama, Florida, Georgia, Louisiana, Mississippi, North Carolina, South Carolina or Tennessee. Community banks that have implemented at least one new customer service initiative since October 2008 are eligible. The deadline for applications is September 30, 2009; and applications can be completed online.

Judges experienced in community banking will evaluate entries based on objectives and strategies, as well as the end results of the benefits offered through the service programs. Winners will be recognized at a ceremony this fall in Atlanta.

To enter, please complete the online application form.

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COMPLIANCE REMINDER – Red Flag Rules Apply August 1, 2009

By Roy Hadley and Toby Butler - Wednesday, July 1, 2009

Although some questioned if the day would arrive, the Red Flag Rules issued by the FTC, the federal bank regulatory agencies and the National Credit Union Administration go into effect August 1, 2009. The Rules are drafted broadly and will apply to many different companies, including “financial institutions and creditors with covered accounts.” Essentially, if you offer any form of loan or maintain any form of money account, you will have to comply the Red Flag Rules.

Preparing for August 1

The biggest step you should take is to prepare a Red Flag Plan. Although the Rules stress that each program should be tailored to the individual entity, some central elements should be present:

  • IDENTIFICATION – Make sure your plan identifies what constitutes a “red flag” (i.e. what could reasonably indicate identify theft).
  • DETECTION – Make sure you have a written procedure for how you will detect, understand and process any red flags.
  • RESPONSE – Make sure you adequately define how you will respond, making sure that you include enough flexibility to respond adequately to different levels of threat.
  • MAINTENANCE – Make sure you have a set process for reviewing, updating and revising your Red Flag Plan.
  • OVERSIGHT – Make sure the plan is properly approved by the Board of Directors, Managers or similar management positions, and include explicit designations of power as to who in management (either the Board or a senior officer) will oversee the Plan and its execution.

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GAO Report Offers More Clarity

By Rob Klingler - Wednesday, April 1, 2009

On March 31, 2009, the Government Accountability Office released its March 2009 report on TARP, as well as an accompanying statement.  Highlights of the report include almost 2,000 applications still being processes for the TARP Capital Purchase Program, another breakdown of how Treasury is spending the TARP funds (including an apparent 45% reduction in TALF), and a little more guidance on the applicable executive compensation limits.

TARP Capital Recipients and Applications

As of March 27, 2009, 272 publicly held institutions, 248 privately held institutions and 12 community development financial institutions had received TARP Capital Purchase Program funding.  Treasury was still in the process of reviewing approval recommendations for 1,190 qualified financial institutions, and more than 750 applicants were still being viewed by the federal bank regulators.  More than 250 financial institutions have withdrawn applications, and no applications have been formally denied by Treasury.

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Powell Goldstein Joins Forces with Bryan Cave

By Walt Moeling - Saturday, November 1, 2008

To our Clients and Friends:

Several years ago, Powell Goldstein adopted a Strategic Plan strongly supported by our Financial Institutions Group to grow by acquisition or merger.  For our group, the objective was to have lawyers on the ground closer to many of our clients outside the immediate Southeast and to have a broader offering of services for our clients.  We have been fortunate to have had the opportunity to assess a number of alternatives in this process, but, until now, we had not found the right fit.  Now we have, and our Financial Institutions Group is very excited about how well the fit works for us.

See the Press Release below announcing the combination of Powell Goldstein and Bryan Cave.  We wanted to supplement the Press Release to tell you how this will and will not impact our Financial Institutions Group and our clients.

For us, Bryan Cave provides additional offices in the United States in Chicago, Irvine, Jefferson City, Kansas City, Los Angeles, New York, Phoenix, San Francisco, St. Louis and Southern Illinois, which we did not have before, to go with our existing offices in Atlanta, Charlotte, Dallas and Washington, DC (where Bryan Cave also has a strong office).  Plus, Bryan Cave has seven offices overseas, which we think may prove to be useful to customers of our bank clients.  This expanded geographic access supports our current national reach — as we like to say, “Community Based, Nationally Recognized.”

In addition to the increased geographic scope, Bryan Cave has a great complement of Banking and Financial Services lawyers, with whom we are already working.  This satisfies our second expansion objective of providing broader services to our clients.

In the end, however, this would not have happened unless we were convinced that the combination would produce a good cultural fit, and we are.  In talking and working with our Bryan Cave counterparts, one cultural imperative became clear: The Client Comes First!  For our Financial Institutions Group and Powell Goldstein as a whole, this has always been the case and was essential to the combination.  We’re convinced that your client experience with us will become even better as a result.

While there will undoubtedly be some changes, our Financial Institutions Group will remain intact and Walt and Kathryn will continue to be its co-leaders.  There are no billing rate changes contemplated, since Bryan Cave’s rates are in line with ours.  In Atlanta, our name will initially be “Bryan Cave Powell Goldstein,” and apart from our changed letterhead, you should see no visible signs of change, other than for the better!

Thank you for your support in the past and going forward, and do not hesitate to call any of us if you have any questions.

The Financial Institutions Group

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