As the financial crisis and hoped-for financial services industry recovery continue to play out, private investor interest in banks and other depository institutions has remained strong, although the level of private investor deal activity plainly has room to grow. The banking industry's need for additional private capital over the next year or more will remain high, as more banks experience financial problems, and regulatory capital requirements increase.
At the same time, healthy banking organizations are becoming increasingly attractive to outside investors that are looking for favorable returns or view the banking franchise as a strategic means to expand their other business lines. However, potential investors must continue to navigate a complex web of bank regulatory requirements and policies, including recent regulatory actions by the FDIC and other federal financial regulators, that materially affect the bank investment landscape and arguably have discouraged some private investment activity.
Mayer Brown's latest in its series of Global Financial Markets Initiatives will focus on some of the current legal, regulatory and practical considerations arising out of private investments in banking organizations. Issues that will be covered include:
- How do Federal Reserve Board and Office of Thrift Supervision "control" rules affect investment decisions? What, in practical terms, does it mean to be a bank or thrift holding company?
- Healthy bank or failed bank? What are the regulatory and practical considerations in acquiring or investing in a distressed or failing bank compared to a healthy bank?
- Buy or build? In the current regulatory environment, is a de novo charter a sensible or realistic consideration for private investors?
- Are some bank charters better than others? Does it make sense to choose a bank acquisition or investment target by its regulator?
- What are the advantages/disadvantages of "blind pool" and "expandable charter" approaches to investments in banks?
Please join Mayer Brown Financial Services Regulatory and Enforcement attorney Scott A. Anenberg for a discussion of these and related questions.
Of Related Interest
FDIC Adopts Modified Policy Statement on Private Equity Investments in Failed Banks
Federal Reserve Board Policy Statement on Equity Investments in Banks and Bank Holding Companies
Mayer Brown's Global Financial Markets Initiative helps clients deal with the legal and business challenges resulting from the ongoing turbulence in worldwide financial markets. By mobilizing the firm's global resources from multiple practices and offices, the Initiative provides clients with knowledgeable and timely counsel on a broad spectrum of their legal needs.