Banking Solutions
Banks are in crisis. We are in the middle of a once-in-a-generation shift in the banking landscape. To address the myriad of concerns associated with this crisis, MLA formed a multi-disciplinary task force of attorneys and public policy professionals to assist banking clients in navigating the complex regulatory, transactional and personal liability issues that they face.
Directors and Officers. MLA is actively engaged in assisting bank officers and directors steer through the current regulatory environment. Regulators are using forceful tactics to determine how loans are classified, how loans are valued, and how much capital banks should be required to reserve for losses or potential losses against those assets. As a result, banks are using real capital for theoretical real estate losses, putting additional stress on bank capital levels. Time is needed for the markets to recover, and MLA’s approach provides that opportunity. Our attorneys focus on preparing for and responding to examinations, putting together an intense workout strategy that buys time for real estate and liquidity markets to recover.
If a bank fails, officers and directors may be subject to significant civil and criminal penalties, as the FDIC scrutinizes insiders as targets of an investigation rather than as management of an ongoing bank. MLA has learned valuable lessons in prior banking crises and has developed a proactive approach to engage regulators at every turn to deal constructively with the issues at hand. Our approach emphasizes constructive solutions and approaches to create the best opportunity for the troubled institution to survive and to ensure that all fiduciaries are taking appropriate action to satisfy their multiple responsibilities.
Private Equity. Capital is the life blood of financial institutions, and in the current banking environment, private equity is a critical source for potential capital. MLA works closely with our private equity and private investor clients to identify, negotiate and close on investment opportunities with troubled financial institutions and their regulators. Our clients are focused on acquiring non-performing loan portfolios, whole banks and bank charters, and making passive non-controlling interests. MLA’s deal sophistication and resources are a critical link in the marriage of private capital and regulated institutions.
Workouts and Restructurings. Non-performing real estate loans are at the root of today’s banking crisis. With more than 35 years of experience, MLA has achieved proven results utilizing a best practices approach to loan restructurings and workouts. In addition to assisting lending clients with portfolio issues, MLA works closely with private equity investors, turnaround advisors, investment banks and loan servicing professionals to address the many complex issues involved in today’s challenging market.
Representative Engagements
- Representing directors and officers in troubled financial institutions
- Representing lending institutions in workouts and restructurings
- Representing potential purchasers of bank charters and financial institutions
- Representing potential purchasers of troubled loan portfolios
- Representing Investment Banks in capital raising initiatives
Advisories
Publications
- Who is Your Borrower in a Virtual World?
- The FDIC: Breaking Banks with Broken Rules
- Receivers Maximize Value of Distressed Assets, While Saving Lenders Money
News
- Industry Veterans Want to Create a Bank in Amish Country
- Q&A With McKenna Long's Tony Canzoneri
- Faulty Appraisals Kill Banks