A Beginner's Guide for Bankers: How to Use Lawyers More Effectively
•Transferir como PPTX, PDF•
0 gostou•273 visualizações
A Beginner's Guide for Bankers: How to Use Lawyers More Effectively; Presentation to Community Banker's of Iowa, Leaders of Tomorrow
Recomendados
Recomendados
Mais conteúdo relacionado
Mais procurados
Mais procurados (20)
Destaque
Destaque (13)
Semelhante a A Beginner's Guide for Bankers: How to Use Lawyers More Effectively
Semelhante a A Beginner's Guide for Bankers: How to Use Lawyers More Effectively (20)
Mais de Jonathan Wegner
Mais de Jonathan Wegner (7)
Último
Último (20)
A Beginner's Guide for Bankers: How to Use Lawyers More Effectively
- 1. You’ve Been Served* * B UT YO UR L AWY E RS CO UL D S E RV E YO U B E T T E R… H E RE ’ S H OW…
- 2. Do you love your lawyer…?
- 3. Many people don’t… • Because of: • (Unbudgeted) Expenses • Difficult Situations • Distraction from Core Business • Painful Legalese
- 4. So Let’s Make it Better! Today we will talk about: How law firms are structured The relationship between banks and lawyers Why and when to use lawyers How to manage legal matters How to manage legal expenses
- 5. Background on Law Firms Apprenticeship Model (1776 – 1900s) The “Cravath Model” (1900-1960s)
- 6. Background on Law Firms Post 1960: ◦ Assembly Line Processes ◦ Creation of the Billable Hour ◦ Pre-1960s attorneys billed for “Services Rendered” ◦ 1300 Hours v. 2400+ Hours Post 1990: ◦ AmLaw 100 ◦ Revenues ◦ Profits per Partner ◦ Limited Liability Partnerships
- 7. Background on Firms Major Retrenchment since 2008 Mergers Rise of Global Firms/Megafirms Entrants in New Markets Non-Lawyer Competition Industry Focused Practice Groups
- 8. Background on Law Firms What Goes into a Billable Hour? Overhead Technology Law Library Online Databases Support Staff Paralegals Librarians Legal Assistants Associates ($150K+ in graduate student loans)
- 9. Background on Law Firms What Goes into a Billable Hour? Reductions for: Write Offs Uncollectable Time Discounted Rates Training Supervision Ongoing Costs: License Fees Pro Bono CLE
- 10. Banks & Lawyers
- 11. Banks & Lawyers Banking Products ◦ Loans ◦ Mortgages ◦ Collateral ◦ Control Agreements ◦ Deposits ◦ Demand Deposits ◦ NOW Accounts ◦ Certificates of Deposit ◦ Money Market Accounts Banking Products ◦ Commercial Banking Services ◦ Treasury Management ◦ Positive Pay ◦ RDC ◦ Payroll ◦ Consumer Banking Services ◦ Mobile Banking ◦ EFTs ◦ Credit, Debit, Prepaid Cards
- 12. Banks & Lawyers Highly Regulated ◦ State laws ◦ UCC ◦ Consumer Protection ◦ Trust Deeds/Mortgages ◦ Federal ◦ Primary Federal Regulator ◦ Alphabet Soup ◦ Dodd-Frank ◦ UDAAP ◦ TPSP Oversight Highly Documented ◦ Notes ◦ Agreements ◦ T&Cs
- 13. Banks & Lawyers Regulatory Problems ◦ Regulatory inquiries ◦ Safety & Soundness ◦ Holding company structure ◦ Insiders Documentation Problems ◦ Product T&Cs ◦ Loan Agreements ◦ Service Agreements Collection Problems ◦ Enforcement ◦ Special Assets ◦ OREO Customer Problems ◦ Lawsuits ◦ Class Actions Employee Problems ◦ Discrimination/Harassment ◦ Employment Agreements ◦ Severance
- 14. Why and When to Use Lawyers
- 15. Why and When to Use Lawyers
- 16. Why and When to Use Lawyers Preemptive Lawyering ◦ Loan Documentation ◦ Complex Loans ◦ Cross Collateralizations ◦ Cross Defaults ◦ Multiple Liens ◦ Complex Syndications/Participations ◦ Acquisitions ◦ Real Estate ◦ Leased Property ◦ Branch Acquisition ◦ Whole Bank ◦ P&A ◦ Merger Preemptive Lawyering ◦ Regulatory Matters & Compliance ◦ Changes to Rules ◦ New Products ◦ New Tech ◦ TPSP Oversight ◦ Due Diligence ◦ Contracts ◦ Standards ◦ PCI ◦ Servicing ◦ UDAAP ◦ Marketing ◦ Complex Products
- 17. Why and When to Use Lawyers Lawsuits Creditors Rights
- 18. How to Manage Legal Matters 1st Principle: AVOID THEM! ◦ Adopt Best Practices to Prevent Claims ◦ Policies ◦ Training & Oversight ◦ Standardization of Documents ◦ Severance Agreements ◦ Establish Internal Controls ◦ Continuous Improvement ◦ Culture of Compliance
- 19. How to Manage Legal Matters 2nd Principle: Is it a “legal” problem? ◦ Non-Legal Matters ◦ Non-Legal Service Providers ◦ Accountants ◦ Compliance Experts ◦ Consultants
- 20. How to Manage Legal Matters 3rd Principle: Does the firm “get” my business? ◦ In-House Counsel ◦ Commodity Work ◦ Routine Collections ◦ Local Real Estate ◦ Specialized Matters ◦ Regulatory ◦ Employment ◦ Big Loans ◦ Bet the Bank
- 21. How to Manage Legal Matters 4th Principle: Use Trusted Advisers; Assemble the Team ◦ Solo Practitioner ◦ Small Firm ◦ Larger Firms: Moniter Appropriate Staffing ◦ Sr. Partner v. Jr. Partner ◦ Associates ◦ Paralegals
- 22. How to Manage Legal Matters 5th Principle: Remove the Emotion ◦ Assess Business Case ◦ Obtain Budgets for Cost/Benefit Analysis ◦ Assess Potential Exposure ◦ Assess Precedential Value ◦ Fit with Strategic Plan ◦ Growth Targets ◦ Shareholder Value ◦ Risk/Reward
- 23. How to Manage Legal Matters 6th Principle: Provide Access ◦ Provide Timely Background ◦ Basic Factual Information ◦ Data ◦ Provide Multiple Points of Contacts ◦ Information “Chokepoints” ◦ Other Service Providers ◦ Accountants ◦ Valuation firms ◦ Experts
- 24. How to Manage Legal Matters 7th Principle: Time Management ◦ Lawyer as Counselor ◦ Legal Matters ◦ Strategic Advice ◦ Fixer ◦ Lawyer as Something Else ◦ Shrink ◦ Buddy ◦ Sounding Board ◦ Yes Man
- 25. How to Manage Legal Matters 8th Principle: Let the Lawyer do the Lawyering ◦ Involve Lawyer in Strategy/Structure ◦ But lawyers do not determine settlement/deal terms ◦ Don’t Reinvent the Wheel ◦ Advantages to Traditional Structures ◦ Familiarity with Document ◦ Proven Track Record ◦ Leverage Previous Customization
- 26. How to Manage Legal Matters 9th Principle: Get what you paid for… Advice! ◦ Lawyers are risk adverse, but… ◦ “It Depends…” is not advice. ◦ Ask “What have you seen…” ◦ In similar situations? ◦ Your other clients do? ◦ As recent trends in this area?
- 27. How to Manage Legal Matters 10th Principle: Terms of Engagement ◦ Lawyers will define scope of matter – make sure it’s right ◦ Review bills for accuracy, validity ◦ Request clarifications ◦ Revisit terms of engagement from time to time ◦ Competitiveness ◦ Value ◦ For ongoing/recurring matters, assess how to make more efficient
- 28. How to Manage Legal Expenses
- 29. How to Manage Legal Expenses Staffing the Matter ◦ Partners ◦ Broader Experience ◦ Subject Matter Expertise ◦ Associates ◦ Value Play ◦ Mentorship v. Pay to Train ◦ Doubling Up ◦ Sometimes Preferable
- 30. How to Manage Legal Expenses Staffing the Matter ◦ Subject Matter Experts ◦ IP/Privacy ◦ Tax ◦ ERISA ◦ Labor ◦ Healthcare ◦ Paralegals ◦ Filings ◦ Commodity Docs
- 31. How to Manage Legal Expenses Reducing Outside Legal Spending ◦ In-House Counsel ◦ Knowledge Dilemma ◦ Geographic/Socioeconomic Differentiation ◦ Billing Software ◦ Serengeti ◦ MyCase
- 33. How to Manage Legal Expenses Reducing Outside Legal Spending ◦ Alternative Billing Practices ◦ Hourly Rate with Cap ◦ Blended Rate ◦ Fixed Fee ◦ Contingent Fee ◦ Retainer-based Discounts ◦ Volume Discounts ◦ Holdback with Success Fee/Premium
- 35. About this Lawyer http://www.slideshare.net/jonathanwegner/ https://www.linkedin.com/in/jonathanwegner jonathanwegner@bairdholm.com