FDIC's Expanded Role in Bank Holding Company Insolvencies

Navigating the Complexities of Banking Regulators' Participation in the Bankruptcy Process

Recording of a 90-minute CLE webinar with Q&A


Conducted on Thursday, July 26, 2012

Recorded event now available

or call 1-800-926-7926
Program Materials

This CLE webinar will provide counsel with a review of the FDIC’s role in BHC bankruptcies and the complex issues facing BHCs, their bank subsidiaries, and the boards and creditors of both. The program will also discuss the impact of the Orderly Liquidation Authority on BHC insolvencies.

Description

Recent developments have greatly expanded the role of the Federal Deposit Insurance Corporation (FDIC) as a participant in insolvency proceedings of bank holding companies (BHC). In the past few years, many BHCs have entered bankruptcy as a result of a subsidiary bank failure, or for protection to recapitalize or sell a subsidiary bank.

Whether or not a subsidiary bank survives the BHC bankruptcy, regulators will have a significant impact on a BHC’s insolvency proceedings. Regulators' impact will be through large claims asserted against the estate or due to prior formal or informal enforcement actions taken against the subsidiary.

Complex issues presented in BHC bankruptcies may include pre-petition capital maintenance agreements, ownership of tax refunds, limitations on ongoing bank activities, overlapping boards of directors, access to confidential information related to the subsidiary bank, and the exercise of the FDIC’s extraordinary powers.

Listen as our authoritative panel of attorneys discusses the expanded role of the FDIC in the bankruptcy proceedings of BHCs and the impact of the regulators' presence on the proceedings.

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Outline

  1. Role and impact of FDIC in BHC bankruptcy proceedings
  2. Complex issues that arise in BHC bankruptcy proceedings
  3. Impact of Orderly Liquidation Authority on future role of FDIC in BHC insolvencies

Benefits

The panel will review these and other key questions:

  • How are pre-petition capital maintenance agreements treated under the Bankruptcy Code and what impact will these claims have on other creditors of the BHC?
  • Does the BHC or the FDIC own the tax refunds generated by the BHC and its banking subsidiaries?
  • Does a trustee have standing to assert breach of fiduciary duty claims against the former directors and officers of a BHC for harm caused to the BHC?

Following the speaker presentations, you'll have an opportunity to get answers to your specific questions during the interactive Q&A.

Faculty

Todd C. Meyers
Todd C. Meyers

Partner
Kilpatrick Townsend & Stockton

He focuses his practice on bankruptcy and insolvency matters and represents committees, creditors and debtors in both...  |  Read More

Ivan L. Kallick
Ivan L. Kallick

Partner
Manatt, Phelps & Phillips

His bankruptcy, insolvency and workout practice is concentrated on large reorganization cases, and he has represented...  |  Read More

James D. Higgason
James D. Higgason

Partner
Diamond McCarthy

For more than 20 years, he handled complex commercial actions nationwide. More recently he has devoted much of his...  |  Read More

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Strafford will process CLE credit for one person on each recording. All formats include program handouts. To find out which recorded format will provide the best CLE option, select your state:

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