|
June 2010 – Paul T. Musser and David J. Jurkiewicz, Bose, McKinney & Evans LLP – In our previous article in the May Hoosier Banker, we began to explore the use of federal statutory and common law as a means of protecting assets acquired from failed financial institutions through Federal Deposit Insurance Corp. purchase and assumption agreements. Through the Supreme Court’s ruling in D’Oench, Duhme & Co. Inc. v. FDIC and 12 U.S.C. § 1823(e), the Seventh Circuit and Indiana courts have provided assuming banks with useful case law in protecting these assets from counterclaims and defenses grounded in “secret agreements” between the failed institutions and their borrowers. The present article examines another, even more robust—though controversial—tool at an assuming bank’s disposal: the Federal Holder in Due Course Doctrine.
More
|
|
June 2010 –Lester F. Murray, The Baker Group – Liquidity is liquidity is liquidity. Right? Well, not exactly. While maintaining sufficient liquidity is crucial to all banks, different banks may utilize different sources and employ different techniques in order to fund their assets and meet their obligations. Liquidity does not come without costs; nor does it come without risks, and that’s why any discussion of liquidity management should not ignore an institution’s overall risk profile. Or, put another way, the management of bank liquidity is part and parcel of asset/liability management.
More
|
|
May 2010 – Paul T. Musser and David J. Jurkiewicz, Bose, McKinney & Evans LLP, As of March, 41 financial institutions have failed this year. This number puts 2010 on pace to surpass 2009’s total of 140 failed institutions. While considerable attention has gone to preventing further collapses, little has been paid to the rights of the Federal Deposit Insurance Corp. and banks acquiring the assets of these failed institutions. How can acquirers protect themselves from the legal baggage that often accompanies these assets to their new owners?
More
|
|
April 2010 - Jeffrey F. Caughron, The Baker Group – It is widely known that regulators are increasing their focus on interest-rate risk (IRR) in the current environment. The Federal Deposit Insurance Corp., for example, has published an article which underscores the importance of sound processes for IRR management at its member institutions. For many banks, now is a good time to assess the adequacy of their asset/liability management models and, in particular, whether their models produce dynamic cash flows for analysis of risk to earnings and capital.
More
|
|
February 2010 – Jeffrey F. Caughron, The Baker Group – The year 2010 marks our second year of an unprecedented interest-rate environment, as we perhaps are moving closer to an inflection point. Banks, trying to maintain margin, are facing a weak lending environment and therefore find themselves relying more heavily on the investment portfolio. Meanwhile the yield curve is historically steep, and investment officers find themselves tempted to extend duration as the Fed continues to hold the funds rate near zero, and longer-maturity bonds offer much better relative yields.
More
|
|
January 2010--Michael J. Messaglia and W. Jason Deppen, Krieg DeVault LLP--The first part of this two-part series discussed the changing capital requirements facing financial institutions. The banking regulators have heightened their scrutiny of regulatory capital and have expressed their intent to increase the capital requirements of financial institutions.
More
|
|
January 2010--James M. Haigh, LaDue Curran & Kuehn LLC--Most of the provisions of the Credit Card Accountability Responsibility and Disclosure Act of 2009 (Credit CARD Act) will go into effect Feb. 22, 2010. The effective dates comes nine months after the comprehensive credit card reform legislation—which passed both houses of Congress with broad, bipartisan support—was signed into law by President Obama.
More
|
|
December 2009—Michael J. Messaglia and W. Jason Deppen, Krieg DeVault LLP—Federal regulatory agencies are providing every indication that minimum capital requirements are about to increase, and regulatory standards are set to strengthen. While the regulatory environment is still uncertain, financial institutions should already be in the process of assessing their capital needs and considering their sources for raising additional capital if the situation warrants.
More
|
|
December 2009—Catherine A. Ghiglieri, Ghiglieri & Company—“Corporate governance” refers to the manner in which a company is directed by its board of directors. With the collapse of such companies as Enron, WorldCom and others, there has been greater scrutiny of corporate governance and the manner in which boards of directors make decisions affecting their companies.
More
|
|
October 2009—Natalie J. Stucky , Bose McKinney & Evans LLP—Most people believe that green buildings are costlier to construct and maintain than conventional buildings. Yet, a 2007 study conducted by Davis Langdon indicates that there is no significant difference between the average cost of the two types of buildings. The way to accurately measure green building expense is to consider initial construction costs, cost offsets, operating expenses and revenue generated by the property.
More
|
|
|
|
|
