Bankruptcy, Workouts & Creditors’ Rights
Government Enforcement & Internal Investigation Assistance
Legislative & Regulatory Issues
Recovery
Repurchase Issues
Structured Finance/Securitization
 
For more than 80 years, Stradley Ronon has provided sophisticated legal counsel to a broad spectrum of financial institutions. From the genesis and growth of the mutual fund industry in the last century, through the bond and real estate crises of the late ’80s and early ’90s and the savings and loan meltdown and Resolution Trust Corporation “wind-up” which followed, the firm has guided financial services institutions through the challenging times.

Today, to help our clients face the credit markets bank failures and mortgage crisis, Stradley Ronon attorneys draw from a wealth of experience from a cross-section of practice groups to offer interdisciplinary industry-specific guidance. From providing litigation assistance, regulatory compliance analysis, conducting an internal investigation or responding to a government investigation, Stradley Ronon has advised lenders, servicers, investors, bondholders, banks, derivatives holders, underwriters, sellers, issuers, collateral managers, trustees, rating agencies and other financial institutions impacted by current market conditions. Although there are many ways that we can help, some specific areas of assistance are offered below.

Repurchase Issues
Stradley Ronon attorneys are well-equipped to represent clients with issues related to all aspects of the repurchase process, including any litigation that may ensue. Many institutions have invested in residential mortgage backed securities (“RMBS”) or other structured products that have incurred losses as a result of higher default rates in this type of investment. Alternatively, institutions may have sold mortgage or other loans to other parties either within or outside of a securitization structure. In either case, Stradley Ronon attorneys are in a position to assist in efficiently analyzing the potential remedies and defenses available with respect to contractual claims that may arise from these transactions in order to preserve or enhance the bank's finances. Indeed, Stradley Ronon’s Structured Finance/Securitization Practice Group is experienced with the numerous complex issues associated with planning and executing sophisticated structured finance transactions, including ABS, RMBS, CBOs, CLOs, CDOs, and synthetic and structured derivatives.

Structured Finance/Securitization
Stradley Ronon has represented issuers and other transaction parties in connection with the securitization and financing of various assets, including subprime and Alt-A mortgage lending products, for more than 12 years. Our attorneys have worked on numerous asset-backed security (ABS), mortgage-backed security (MBS), collateralized-debt obligation (CDO) and derivatives transactions. We have also provided advice on loan servicing matters, and have counseled servicers on loss mitigation programs, including current mortgage loan modification initiatives. Stradley Ronon is an active member of the American Securitization Forum and our attorneys keep abreast of current developments in the industry, both from a market standpoint and from a legislative and regulatory perspective.

Government Enforcement & Internal Investigation Assistance
Lawyers in Stradley Ronon’s Washington, D.C., office have extensive experience in conducting internal investigations in the financial services industry. We assist clients with inquiries, investigations and enforcement actions by both federal and state regulatory bodies, including the SEC, DOJ, state Attorneys General, local district attorneys offices, federal and state banking and securities regulators among others. We regularly conduct internal investigations in advance of or in connection with government action or private lawsuits. We recently led, for example, an independent investigation into alleged financial improprieties at a subsidiary of a NASDAQ-listed financial services firm.

Legislative & Regulatory Issues
Our attorneys provide regulatory compliance advice and support to financial services clients, and are well-equipped to advise institutions on emerging issues, as new legislation and regulations are enacted in response to the credit markets crisis. We regularly represent clients before the FDIC, Federal Reserve, The Office of the Comptroller of the Currency, Office of Thrift Supervision, National Credit Union Association, SEC, NASD, NYSE, and AMEX, as well as many state banking, insurance, securities and other regulatory agencies. We frequently lobby federal and state legislative and executive branches on issues of concern to financial institutions.

Bankruptcy, Workouts & Creditors’ Rights
Our attorneys have extensive experience with respect to bankruptcy, restructuring, creditor’s rights and workout issues, and are well positioned to meet client needs in conjunction with fallout from the credit markets. Some of our lawyers have received national certification from the American Board of Certification of expertise in the area of Chapter 11 Business Bankruptcy. Our experience in this area includes both out-of-court and in-bankruptcy loan restructurings and reorganizations, on both a local and national basis.

In the area of bankruptcy litigation, we have successfully defended lenders who have been the target of claims for fraudulent conveyances, preferential transfers, unauthorized post-petition transfers, reclamation claims, marshaling of assets, equitable subordination, breach of the covenant of good faith and fair dealing and other related “lender liability” types of claims. We also have participated in numerous hearings regarding relief from the automatic stay and the use of cash collateral and related issues of adequate protection, the appointment of a Chapter 11 trustee, debtor-in-possession financing and contested hearings with respect to the approval of disclosure statements and related plans of reorganization.

Recovery
In addition to our investigative know-how, we have the experience necessary to assist clients in implementing alternative strategies to resolve any failed or failing financial institution. Whether the particular facts and circumstances suggest a purchase and assumption transaction, a deposit payoff or a receivership, Stradley Ronon has the deep bench of professionals needed to handle these tasks as counsel. Notably, a member of our team represented a Receiver in a more than $200 million alternative investment involving institutional and individual investors on multiple continents. On the strength of our investigation, a Stradley Ronon trial team filed a lawsuit alleging commodities fraud and RICO violations, among other claims. In late 2007, on the eve of trial and following multiple mediation sessions, the Receiver settled his claims against all defendants for $96 million. Combined with a $76 million recovery that the Receiver made immediately following his appointment by liquidating open positions, our total recovery on behalf of the Receiver was approximately $180 million.

Stradley Ronon’s lawyers have also been involved in a number of insurance-company liquidations, which have routinely included the investigation and pursuit of various third-party claims against directors and officers, auditors and actuarial/accounting experts. Our experience in claims investigation and pursuit, including third-party recovery matters, provides a ready source of talent and skills for us to draw from.