Financial Services Industry

Overview

Succeeding today in the financial services industry means navigating an ever-changing economic landscape and a sweeping array of regulatory and compliance issues. Our Financial Services team has the experience, knowledge and skills to assist clients in managing these issues, finding solutions and achieving their unique business goals. With more than 100 attorneys practicing in this space – from coast to coast and internationally – we are well-positioned to advise on litigation and enforcement proceedings, assist with compliance and licensing, counsel on lending and restructuring and help with rapidly evolving privacy and technology issues, including the design and implementation of various credit products.

In a volatile atmosphere, we are thoughtful, informed and focused on our clients’ needs. As appropriate, we draw on the strengths of our more than 940 colleagues in practice areas such as tax, securities, bankruptcy, employment, white collar and more.

What we do

Our multidisciplinary team provides practical advice on a full range of financial services.

Litigation: Our nationally recognized attorneys are well-versed in representing financial institutions in disputes involving consumer and commercial borrowers, class actions, third-party vendors and other financial institutions, as well as in dealings with governmental agencies such as the Department of Justice, Securities and Exchange Commission, Consumer Financial Protection Bureau and other agencies at the state and federal levels.

  • Appeals
  • Arbitration
  • Bank product litigation
  • Class actions
  • Commercial litigation
  • Consumer litigation
  • Data privacy
  • EFTA, FDCPA, FCRA, FIRREA, RESPA, TILA, UCC, and UDAAP matters
  • ERISA litigation
  • Mortgage servicing litigation
  • Trust litigation
More »

Regulatory, compliance and licensing: Our team regularly represents financial institutions in regulatory actions and advises on a variety of compliance and licensing issues. As enforcement efforts evolve, we provide proactive advice and practical strategies to support our clients’ goals.

  • Affiliate Marketing Rule
  • Bank and credit union regulatory issues
  • Broker-dealer
  • Compliance with OFAC regulations administering U.S. embargoes and sanctions
  • Consumer Financial Protection Bureau (CFPB) enforcement and counseling
  • Crowdfunding
  • Data privacy
  • Fair lending
  • Fair Credit Reporting Act (FCRA) audits
  • Investment advisers
  • Internal investigations
  • Investment companies and funds
  • Loan repurchase
  • Monitorships
  • Nationwide Mortgage Licensing System (NMLS) and Secure and Fair Enforcement for Mortgage Licensing (SAFE) Act
  • Payment processing under the National Automated Clearing House Association (NACHA) rules
  • Private investor networks
  • Red Flags Rule
  • Social media compliance
  • State agency and attorney general enforcement and counseling
  • State Unfair, Deceptive or Abusive Practices (UDAP) statutes
  • Vendor management

Financing and capital markets: Our attorneys represent financial institutions in a wide range of capital markets and commercial financing transactions. We provide securities advice and other regulatory advice and work with credit structure, documentation and collateral issues in all types of equity of debt financings, including senior and subordinated commercial and asset-based facilities, as well as public and private issuances of equity of debt securities.

We represent bank groups and other credit sources in structuring U.S. and international credit facilities – both upside credit restructurings and downside credit management issues.

We deftly handle financing transactions of all sizes and types across a variety of industries, including:

  • Automotive
  • Construction
  • Energy
  • Healthcare
  • Hospitality
  • Manufacturing
  • Media
  • Private banking
  • Real estate
  • Student loan
  • Tax-exempt
  • Transportation

Restructuring: We understand the unique needs of secured lenders, debtors, creditors’ committees, critical vendors and other stakeholders in insolvency proceedings, litigation and negotiations. In court, we can often prevent the dissipation of assets and help maximize a creditor’s recovery.

  • Complex collections actions and receiverships
    • Commercial foreclosures
    • Article IX sales and other nonjudicial enforcement actions
    • Unique collateral – e.g., aircraft, boats/ships, securities
    • Receiverships
  • Loan restructurings and workouts
    • Forbearance agreements
    • Discounted payoffs
    • Loan sales
    • Loan restructurings
  • Special servicing
  • Loan syndication and intercreditor matters
    • Representation of administrative agents and individual lenders in syndications
    • Intercreditor agreements and disputes
  • Bankruptcy
    • Representation of the FDIC as receiver in bank holding company bankruptcy cases

Financial technology: Our multidisciplinary team is a leader in advising clients regarding blockchain technologies and virtual currencies – whether they are integrating the technologies into established operations, re-engineering business practices, or creating new and disruptive applications. We help clients work through the myriad issues that arise in Initial Coin Offerings (ICOs) or Token Generating Events (TGEs), including corporate and securities matters, tax, and other regulatory hurdles. We also advise clients on privacy and security issues presented by blockchain technologies and digital currencies, including data collection and use, “know your customer” compliance, and security incident preparedness and response.

  • Contract negotiations
  • Electronic Signatures in Global and National Commerce (E-SIGN) Act
  • Litigation
  • Payment card products
  • Proactive regulatory compliance consulting
  • Regulatory enforcement
  • Security incident response
Who we work with
  • Financial institutions and lenders
    • Superregional and regional banks
    • Thrifts and S&Ls
    • Mortgage lenders
    • Auto lenders
    • Credit card issuers
    • Student lenders
  • Investment banks
    • Underwriters
    • Placement agents
    • Broker-dealers
    • Crowdfunding portals
  • Nonbank and niche lenders
    • Debt funds
    • Insurance companies
    • Healthcare financers
    • Payday lenders
  • Funds
    • Investment companies
    • Hedge funds
    • Private equity funds
    • Investment advisers
    • Exchange-traded funds
  • Service providers
    • Loan servicers
    • Payment card systems
    • Payment processors
    • Custodians
    • Trustees
    • Depositories

Select Experience

Litigation

  • Defeated a class certification in a putative nationwide class action brought by an individual borrower alleging violations of the Real Estate Settlement Procedures Act (RESPA). The plaintiff alleged that the bank and its subsidiary, an affiliated real estate settlement service provider, engaged in kickbacks and fee splitting.
  • Appointed by the U.S. government five times to manage federal monitorships, including critical monitorships for Merrill Lynch and The Bank of New York Mellon Corporation.

Lending

  • Regularly represent a large regional bank in commercial real estate transactions, including a recent matter in connection with a $15.5 million construction loan for a project that involved property previously used in the operations of large global oil companies. Using attorneys from the firm’s various practice areas and offices, we provided counsel regarding numerous sensitive issues and brought the matter to a successful close.
  • Represented a large regional bank in connection with commercial lines of credit, including a $100 million multipurpose facility designed to accommodate the borrower’s mortgage loan warehousing, bridge loan construction loan and working capital needs.

Regulatory

  • Advise domestic and foreign broker-dealers on registration obligations at available exemptions.
  • Defended a national specialty finance company and successfully defended the client in consumer-initiated class actions involving state and federal consumer statutes.
  • Counseled a publicly traded financial services client through to resolution of a CFPB investigation.
  • Created a recognized CFPB compliance management system to assist mortgage lenders with the various revised .

Bankruptcy and restructuring

  • Represented a major regional bank in the resolution of a portfolio of nearly $6 million in distressed loans to a residential real estate developer. Pursued the owner-guarantor, who had engaged in extensive estate planning under Florida law to “protect” his assets. After discovery of a flaw in the guarantor’s scheme, used post-judgment enforcement proceedings against allegedly exempt assets to obtain a loan sale on terms favorable to the bank.
  • Advised in the workout of loan facilities for distressed middle-market oil producers operating in Ohio, Texas, Oklahoma and other states; currently advising in connection with distressed syndicated loans to an oil field services company in Colorado.
More »

Professionals

Name Title Office Email
Partner Houston
Partner Cleveland
Associate Columbus
Partner Los Angeles
Associate New York
Counsel New York
Partner Orlando
Associate Philadelphia
Partner Atlanta
Partner Washington, D.C.
Partner Cleveland
Partner Cleveland
Associate Cleveland
Partner New York
Partner New York
Counsel Denver
Partner Atlanta
Partner Denver
Partner New York
Associate New York
Associate Cleveland
Partner Washington, D.C.
Partner Houston
Partner Cleveland
Associate Atlanta
Counsel Cleveland
Senior Advisor Cleveland
Partner Houston
Counsel Cleveland
Partner Cleveland
Partner New York
Associate Cleveland
Associate Cleveland
Counsel Denver
Partner New York
Partner Seattle
Partner New York
Partner Cleveland
Counsel New York
Partner Cleveland
Partner New York
Staff Attorney Cleveland
Counsel New York
Partner Orlando
Partner Seattle
Partner Chicago
Partner Orlando
Partner Cincinnati
Partner Cleveland
Associate Atlanta
Counsel Cincinnati
Associate Columbus
Partner Seattle
Partner Cincinnati
Partner Cleveland
Associate New York
Partner Washington, D.C.
Senior Advisor Washington, D.C.
Partner Denver
Associate New York
Partner Cleveland
Associate New York
Partner New York
Partner Cleveland
Partner Cleveland
Counsel Columbus
Partner Orlando
Associate Cleveland
Partner New York
Partner Columbus
Partner New York
Partner Orlando
Partner New York
Associate Seattle
Partner Washington, D.C.
Partner Cleveland
Partner Houston
Partner Cleveland
Senior Advisor Washington, D.C.
Partner New York
Partner Cincinnati
Counsel New York
Partner Los Angeles
Partner Cleveland
Partner New York
Partner New York
Partner Washington, D.C.
Associate Cleveland
Partner New York
Partner Orlando
Associate Cleveland
Partner Cleveland
Partner New York
Associate Houston
Partner Cleveland
Partner Cleveland
Partner Cleveland
Partner Cleveland
Partner Cleveland
Partner Orlando
Associate Columbus
Partner Cleveland
Partner Cleveland
Associate Columbus
Partner Cleveland
Partner Cleveland
Partner Chicago
Associate Atlanta
Associate Costa Mesa
Partner Washington, D.C.
Partner Cleveland

Experience

Litigation

  • Defeated a class certification in a putative nationwide class action brought by an individual borrower alleging violations of the Real Estate Settlement Procedures Act (RESPA). The plaintiff alleged that the bank and its subsidiary, an affiliated real estate settlement service provider, engaged in kickbacks and fee splitting.
  • Appointed by the U.S. government five times to manage federal monitorships, including critical monitorships for Merrill Lynch and The Bank of New York Mellon Corporation.
  • Represented a bank in a commercial class action alleging speculative, excess and overstated loan interest charges. On behalf of the financial institution, we obtained complete dismissal of putative nationwide and state class actions involving allegedly improper commercial billing practices. Other banks had previously settled parallel claims for eight figures.
  • Member of a team representing a federally insured bank in a matter involving a novel banking product being offered to consumers. We represent the bank in five parallel putative nationwide class action lawsuits initially filed in federal courts, now consolidated in a single action. The lawsuit is the first of its kind and raises complicated issues of first impression in a highly regulated area of law overseen by a number of agencies and regulations, including usury, TILA, and EFTA.
  • Successfully moved to dismiss a statewide consumer class action seeking to hold the client, a large regional bank, liable under the Uniform Commercial Code and Ohio common law in connection with a Ponzi scheme involving unregistered securities orchestrated by a third party.
  • Represented the only defendant bank to obtain a summary judgment in a multiparty lawsuit. The litigation was brought by a software company’s former CEO and largest shareholder, who made allegations against the bank that it engaged in collusion and conspiracy to loot the company in its role as a senior lender in a multilayer financing structure. The win eradicated a claim for $20 million in compensatory damages and unspecified amounts in punitive damages sought by the plaintiff.

Lending

  • Regularly represent a large regional bank in commercial real estate transactions, including a recent matter in connection with a $15.5 million construction loan for a project that involved property previously used in the operations of large global oil companies. Using attorneys from the firm’s various practice areas and offices, we provided counsel regarding numerous sensitive issues and brought the matter to a successful close.
  • Represented a large regional bank in connection with commercial lines of credit, including a $100 million multipurpose facility designed to accommodate the borrower’s mortgage loan warehousing, bridge loan, construction loan and working capital needs.
  • Represented other lenders in many mortgage loan warehousing transactions, lines of credit, bridge loans and construction loans in a range of sizes and complexity.
  • Represented a large lender as participant and administrative agent in several syndicated club transactions with financial institutions.

Regulatory

  • Advise domestic and foreign broker-dealers on registration obligations at available exemptions.
  • Defended a national specialty finance company and successfully defended the client in consumer-initiated class actions involving state and federal consumer statutes.
  • Counseled a publicly traded financial services client through to resolution of a CFPB investigation.
  • Created a recognized CFPB compliance management system to assist mortgage lenders with the various revised lending laws resulting from the Dodd-Frank Act.
  • Assisted a nationally recognized lender with large-scale licensing and compliance matters involving state regulators.
  • Advised a financial institution on structuring novel consumer bank products.
  • Advised a financial institution on compliance issues in connection with third-party vendor contracts.
  • Established OFAC compliance policies and programs and proved related training for a number of financial institutions.
  • Prepared OFAC voluntary self-disclosure for industry clients.
  • Assisted with responses to SEC enquiries regarding dealings with embargoed countries/sanctioned persons.
  • Advised investment advisers on newly revised SEC registration requirements and on-going compliance obligations under the Investment Advisers Act of 1940.
  • Advised funds and special purpose vehicles (SPVs) on available exceptions from the Investment Company Act of 1940.

Bankruptcy and restructuring

  • Represented a major regional bank in the resolution of a portfolio of nearly $6 million in distressed loans to a residential real estate developer. Pursued the owner-guarantor, who had engaged in extensive estate planning under Florida law to “protect” his assets. After discovery of a flaw in the guarantor’s scheme, used post-judgment enforcement proceedings against allegedly exempt assets to obtain a loan sale on terms favorable to the bank.
  • Advised in the workout of loan facilities for distressed middle-market oil producers operating in Ohio, Texas, Oklahoma and other states; currently advising in connection with distressed syndicated loans to an oil field services company in Colorado.
  • Represents the FDIC as receiver of failed financial institutions in bank holding company bankruptcy cases.
  • Represented a regional bank in complex individual Chapter 11 proceedings seeking to recover more than $12 million in defaulted commercial loans. Successfully defended the bank’s lien positions and claims and through negotiation of favorable plan and cash collateral treatment and the prosecution of related-party state court foreclosure proceedings in two states, achieved nearly a 100 percent recovery for the bank.
  • Assisted nationally rated special servicers with the disposition of more than $8 million in distressed hospitality loans throughout Ohio; managed receivership processes and used creative approaches to liquidate the assets to maximize recovery for investors.
  • Represented a bank in litigation before the Ohio Supreme Court defending against guarantors’ attempt to bar enforcement of guarantees based on an alleged oral forbearance agreement; secured a unanimous ruling that such oral agreements are invalid.

Recognition

  • Chambers Fintech: Legal – USA (2018)
    • Band 4
  • Recognized as one of the top law firms for client service, we were named to the 2018 BTI Client Service 30 for the fourth consecutive year.

News

News

Press Releases

Publications

Alerts

Articles

Memberships

  • BakerHostetler is the 2017 Sponsor of the ACC Financial Services Committee
  • Affiliate member of the Ohio Bankers League (OBL) (2016-2018)

Key Contacts

Blog

In The Blogs

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Financial Services Blog
Supreme Court To Review FCC Deference In TCPA Cases
December 5, 2018
On Nov. 13, 2018, the U.S. Supreme Court granted certiorari in Carlton & Harris Chiropractic, Inc. v. PDR Network, LLC, after the Fourth Circuit vacated a lower court ruling regarding what constitutes an “unsolicited advertisement” under...
Read More ->
Financial Services Blog
IRS Issues Regulations That May Affect Borrowing Costs and Financing Terms of US Multinationals
By Roger M. Brown, Christopher J. Carolan, Jeffrey H. Paravano
November 27, 2018
Recently proposed IRS regulations materially change the way stock and assets of foreign corporations that are “controlled foreign corporations” (CFCs) can be used to support debt of U.S. affiliates. In the commercial lending market, this...
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Financial Services Blog
The Ninth Circuit Wades Into the “Autodialer” Fray and Creates a Circuit Split. TCPA Litigants Await FCC Guidance
By Rand L. McClellan
September 27, 2018
What constitutes an autodialer or “automatic telephone dialing system” (ATDS) under the Telephone Consumer Protection Act (TCPA) is in flux. Under the statute, an “automatic telephone dialing system” is defined as “equipment that has the...
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Financial Services Blog
SEC Continues to Expand Examinations Focused on Crypto-Assets
By Jessie M. Gabriel
August 27, 2018
Jay Clayton, chairman of the Securities and Exchange Commission (SEC or Commission), made clear back in December 2017 that his Commission was concerned with the proliferation of crypto-assets. The SEC defines crypto-assets as...
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Financial Services Blog
OCC Announces It Will Begin Accepting Fintech Charter Applications
By Melonia A. Bennett
August 1, 2018
On July 31, 2018, the Office of the Comptroller of the Currency (OCC) announced that it will begin accepting applications for special purpose national bank charters from financial technology companies. This “fintech charter” is limited to...
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