Davis Polk's Financial Institutions Group has produced a variety of substantive materials addressing the FDIC's Proposed Policy Statement on Qualifications for Failed Bank Acquisitions.
Webcast
On Monday, August 3, Davis Polk hosted a webcast discussing:
- An overview of the FDIC's proposals and their effect on pending transactions
- Panelists' views on the FDIC's proposals likely to be a part of the FDIC's Final Policy Statement
- The business and legal implications of the capital, cross-guarantee and source-of-strength proposals
Panelists included Randal Quarles, Managing Director at The Carlyle Group, John Douglas, Davis Polk partner and former General Counsel of the FDIC, and Randall Guynn, Head of Davis Polk's Financial Institutions Group. The webcast was moderated by Margaret Tahyar, a Davis Polk Financial Institutions Group partner.
Click here to access an archived version of the webcast. CLE credit is available with this program.
FDIC Comment Letter
Davis Polk has also submitted a comment letter with respect to the proposal, highlighting three main points:
- First, the FDIC should be encouraging private capital investors into the banking system, not creating artificial barriers to discourage such investment.
- Second, the existing statutory framework, crafted over decades, rather than an FDIC policy statement, provides the appropriate mechanism to address such items as cross-guarantee liability, source of strength, transactions with affiliates and related items.
- Third, given the chilling effect the proposed Policy Statement has already had on pending transactions, we encourage rapid action by the FDIC to clarify or withdraw the proposed Policy Statement altogether.
Click here to access the Davis Polk comment letter.
Davis Polk Memorandum
Click here for a copy of the Davis Polk memorandum entitled "FDIC Proposes Conditions for Investments in Failed Banks by Private Capital Investors," which discusses the proposed policy statement and sets forth some of the issues raised by the proposal.