To navigate the changes occurring in today’s complex and fast-moving regulatory environment, financial firms need experienced counsel to help them manage risk and navigate new paths to growth. Paul Hastings’ Bank Regulatory group advises a wide range of U.S. and international clients, including insured institutions, their holding companies, foreign banks, industrial loan companies, insurance and securities firms, mortgage companies, and other financial services firms regarding the application of federal and state banking laws and regulations. These include the Bank Holding Company Act, National Bank Act, Bank Service Corporation Act, Federal Deposit Insurance Act (“FDIA”) and Federal Reserve Act.

We regularly advise clients on:

• Issues pertaining to the Section 4 of the BHCA as implemented by Regulation Y, including, the Federal Reserve’s control rules, permissible activities, and compliance with the Volcker Rule.

• The intricacies of Sections 23A and 23B of the Federal Reserve Act and Regulation W with respect to their transactions with affiliates, including under its attribution rules.

• Appearances before federal and state regulators in connection with interpretative requests.

• Chartering of de novo banks and trust companies, as well as the formation of bank holding companies.

• Issues under the FDIA, such as with respect to brokered deposits and the exemptions thereto, prompt corrective action matters, golden parachutes and permissible indemnification payments.

• Issues related to troubled banks, including matters impacting their directors and officers.

• Enforcement matters involving both federal and state regulatory authorities.

• Engagement with digital asset activities in the ever-changing regulatory environment.

Our team, which includes former regulators in the U.S. and U.K., has strong working relationships with regulatory agencies, counsels some of the world’s largest financial institutions on issues as diverse as the proper choice of charter to conduct activities, capital and regulatory requirements, and the structuring of products and services.

In addition to representing many of our clients in mergers and acquisitions, we also advise directors and officers address the complex issues involved in a regulatory investigation—or facing imminent regulatory failure prior to a formal investigation being launched.

Representative Experience

• Citigroup on Citi Ventures’ Impact Fund in connection with addressing bank holding company and Volcker Rule compliance issues.

• Cross River Bank on regulatory issues, including with respect to its Fintech and payment relationships, including numerous regulatory filings under applicable digital asset guidance.

• GenuBank with its proposed conversion from a state to a national bank, including a digital asset strategy; prepared numerous regulatory filings and made presentations to regulators (withdrawn).

• Dayforce National Trust Company (fka Ceridian National Trust Company) on its de novo application for a national trust bank launched in 2023, including numerous regulatory filings, and presentations, from pre-filing through commencement of operations.

• Pathward, N.A. (fka MetaBank) on bank regulatory matters, Fintech relationships, brokered deposit issues, and implementation of government stimulus programs.

• PayPal, Inc. in its establishment and retention of its money transmitter licenses and various regulatory issues.

• A bank holding company on representation before The Federal Reserve Bank of San Francisco (FRBSF) and Federal Reserve Board on the permissibility of acquiring technology for asset tokenization activities.

• Figure Technologies on bank and state regulatory matters with respect to its product offerings.

• The Banking Subsidiary of a Major U.S. Retailer on bank regulatory matters, from formation, on safety and soundness examinations, Community Reinvestment Act examinations, credit card issuing partnerships, and ultimately divestiture from its parent.

• Organizers in connection with various charter applications to establish full-service, FDIC-insured national or state banks.

• Officers of banks and non-banks in connection with enforcement actions initiated by Federal and state regulators.

• Financial services provider and its bank subsidiary on bank regulatory matters, from formation, on safety and soundness examinations, Community Reinvestment Act examinations, credit card issuing partnerships, and, ultimately, divestiture.

• A startup in connection with the establishment of its bank partnership and the launch of its app-based savings solution for children, as well as early-stage investments.

• A global investment management organization and a large insurance company in all aspects of debanking and deregistering as a bank holding company and savings and loan holding company, including conversion of insured depository institution subsidiaries to trust-only institutions, regulatory and transactional structuring, divestitures, bank regulatory applications, and representation before multiple federal and state bank regulatory agencies.

• Several digital asset companies on proposed trust company formations to facilitate their product offerings.

• A national trust bank on representation before OCC in converting a state trust company to national trust bank, becoming the first national bank authorized to conduct digital asset custody and related activities.

• A state member bank on representation before FRBSF and Federal Reserve Board on the permissibility of holding fiat reserves backing stablecoins and conducting asset tokenization activities.