Pros and Cons of Bank Holding Companies: Determining Whether a Bank Holding Company Structure Makes Sense for Your Bank
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE course will examine pros and cons of operating under a bank holding company or financial holding company (BHC) vs. a simple stand-alone bank structure. The presentation will include a discussion of the federal laws and regulations regarding permissible activities for banks and their holding companies. The panel will also discuss potential benefits and costs of merging a BHC into a bank.
Outline
- Regulatory framework for banks
- Bank holding companies and financial holding companies
- Small BHC Policy Statement: impact on banks with under $1 billion in assets
- Disadvantages of BHCs
- Advantages of BHCs
- Eliminating an existing BHC into a bank: procedural issues
Benefits
The panel will review these and other key issues:
- What kinds of activities and investments are allowed for banks beyond traditional banking activities?
- What are the additional operational flexibilities of BHCs?
- How does the Small BHC Policy Statement impact the analysis for banks with under $1 billion in assets?
- What are the regulatory and cost considerations of forming and operating as a BHC?
- When might it be desirable to merge a BHC (and affiliates) into a bank?
Faculty
Samantha M. Kirby
Partner; Co-Chair of the Banking and Consumer Financial Services Practice
Goodwin Procter
Ms. Kirby advises boards and management of financial institutions and other financial services firms on strategic... | Read More
Ms. Kirby advises boards and management of financial institutions and other financial services firms on strategic corporate governance and bank regulatory matters, public company reporting, and corporate finance and M&A transactions, including bank mutual-to-stock conversions, holding company formations, and de novo bank chartering. In addition to working with the firm's full service bank and thrift clients, Ms. Kirby has worked extensively with nonbank financial services providers to establish limited purpose trust banks and other nontraditional vehicles for providing fiduciary and asset management services, and advises banks and trust companies that manage collective investment funds and other commingled pools.
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Ralph F. (Chip) MacDonald, III
Of Counsel
Jones Day
Mr. MacDonald is a financial services lawyer who focuses on M&As, public and private securities, governance, and... | Read More
Mr. MacDonald is a financial services lawyer who focuses on M&As, public and private securities, governance, and policy issues for clients engaged in this industry. Since 1979, he has helped domestic and international clients including bank holding companies, banks, investment banks, broker-dealers, investment managers, and fintech companies. He advises senior management and boards of directors. Mr. MacDonald also provides strategic and transaction guidance, including evolving areas such as regulatory relief and financial services policy. A growing area is the fintech industry, particularly its regulation and relationships with state, federal, and foreign regulators and traditional financial services companies. Clients range from global banks such as Citibank and BNP to regional and community banks. He often advises commercial businesses with respect to relationships and services with their financial services providers. Mr. MacDonald advises clients frequently regarding financial services M&As, asset and liability transactions, public and private securities offerings, Volcker Rule, investments and risk management, and bank, trust company, credit card, fintech, and other financial services charters.
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Donald S. Waack
Partner
Morgan Lewis & Bockius
Mr. Waack counsels globally active financial services firms on their most challenging regulatory, transactional, and... | Read More
Mr. Waack counsels globally active financial services firms on their most challenging regulatory, transactional, and enforcement matters. He devotes the majority of his practice to advising banks, bank holding companies, and other financial institutions on complex strategic and regulatory matters, including regulatory control determinations; investment authority issues and activities restrictions; fund formation; fintech partnerships and investments; regulatory capital; affiliate transactions; vendor management issues; and proprietary trading and private fund restrictions arising under the Volcker Rule.
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