Capital Raising and Investments in Bank Capital
As a result of the global financial crisis and
the regulatory reform that is currently under way, financial
institutions are facing increased pressures regarding
capital.
Under the Dodd-Frank Wall Street Reform and
Consumer Protection Act, US bank and thrift holding companies
(including US intermediate holding companies of foreign banking
organizations) and systemically important nonbank financial
companies will be subject to the same risk-based and leverage
capital standards that currently apply to US depository
institutions. In addition, amended international capital
adequacy guidelines under Basel III are expected to become
effective by the end of 2012. These reforms will require many
financial institutions to find new or additional sources of capital
to satisfy applicable capital requirements.
At the same time, non-traditional investors in
bank capital, such as private equity firms, continue to be faced
with significant regulatory obstacles to such investments,
including heightened regulatory capital standards for troubled
banks that are acquired by private equity investors.
SNR Denton lawyers have extensive
experience in helping guide financial institution clients through
all forms of capital-raising transactions.
Our lawyers understand the legal and
practical issues faced by financial institutions in the
capital-raising process, and we have the capability to assemble a
diversified team to cover every aspect, including compliance with
US and international securities and banking laws, and tax and
compensation/benefits matters. We also regularly advise
investors in bank capital, particularly regarding the change in
bank control and holding company laws that might be triggered as a
result of those investments.
Areas of Focus:
- IPO
- Shelf registrations/follow-up equity offerings
- Corporate debt (senior/subordinated)
- Trust preferred securities
- Rights offerings
- PIPE transactions
- Private equity investment in
banks