Subscribe in a reader
Once is a blue moon, I like to give a special shout-out to other lawyers whose work I admire, instead of simply stealing it and claiming it as my own. I realize that puts me at a competitive disadvantage versus Gen Y, but I figure what I lack in pilfered work product I can make up for in the sheer volume of hot air I vent.
The first hat tip goes to old friend Joe Lynyak, who's published a client alert entitled "Responding to Capital Directives and Related Enforcement Actions by Banking Regulators." As long as community banks continue to suffer, this topic will be current. As Joe observes, this problem isn't disappearing tomorrow.
In the past four years, the FDIC has closed approximately 400 insured institutions—as of January 1, 2012, the FDIC has indicated that there were over 800 banks on its "problem bank list." The difficulties experienced by many of these institutions are summarized in this analysis— and may provide useful guidance when attempting to resolve capital issues in the next few years.
A version of Joe's article will appear in the April issue of the Banking Law Journal.
Another bank lawyer whose work I admire is former OTS attorney Jerry Comizio. He and Amanda Jabour have written a well-reasoned critique of the arguments supporting and opposing Richard Cordray's recess appointment as Director of the CFPB. In a society suffering from perennial ADHD, this might seem like old news. However, the authors point out the "legal issues surrounding the appointment have significant implications for all institutions regulated by the CFPB." It's refreshingly free of partisan posturing, as well as any Bank-Lawyer's-Blog-like snark. I highly recommend it for those who care about the issue.
Finally, Kevin LaCroix asks the question "Is the FDIC Ramping Up Its Failed Bank Litigation"? He answers his own question and the answer is "yes." Again, this is an issue that is likely to linger, and, in fact, increase in importance over the next few years. Kevin is all over it, and if you're not already following his D&O Diary blog, you should be.
