Advisories
Most major national title insurance companies will no longer provide "creditors' rights" coverage, which could have a significant impact on buyers' and lenders' underwriting and analysis of commercial real estate transactions.
We're living in a post-9/15 world One year ago, Lehman Brothers Holdings Inc.— with $639 billion in assets — became the largest company by a factor of three to file for bankruptcy protection in U.S. history. Already brittle financial markets were cracking from the previous week's conservatorships of Fannie Mae and Freddie Mac. When markets opened on Monday, Sept. 15, to the news that Lehman failed and the Fed arranged a hasty shotgun wedding between Merrill Lynch and Bank of America, what had been teetering market sentiment collapsed. A downward-sloping trajectory turned vertical. We stand at a very different spot from where we stood looking into a chasm 12 months ago. Banks have regained confidence to lend short-term to other banks. Insured depositors have been assured that their money is safe. Financial stocks that hit bottom this past March are up fivefold and sixfold. McKenna Long & Aldridge LLP (MLA) Managing Director Brian Olasov considers the hard-earned lessons from this past year in an op-ed that is running in various regional business chronicles.
This advisory summarizes the FDIC's Board of Directors' Final Statement of Policy for private capital investors investing in or acquiring failed banks or thrifts and/or assumption of assets and deposit liabilities of failed banks or thrifts. The Statement is subject to review and potentially modification in 6 months by the Board, but is the current attempt to strike a balance between investment in financial institutions from non-traditional sources and the need for capital to resolve a large number of failing institutions.
Updated information concerning HR 1, the American Recovery and Reinvestment Act of 2009.
Advisory concerning the American Recovery and Reinvestment Act of 2009.
Today, just as in the mid 1970s and 1980s, the hard insurance market is causing many companies to consider setting up captive insurance companies or joining group captives. This alert, addressing tax issues, is the first of a two-part series dealing with issues concerning the hard insurance market and its impact on clients and friends of the firm.