The Colonial BancGroup, Inc.: FDIC denied right to setoff against demand deposit accounts

On January 24, 2011, the Honorable Dwight H. Williams, Jr. of the U.S. Bankruptcy Court for the Middle District of Alabama denied the Federal Deposit Insurance Corporation’s (“FDIC”) request for relief from the automatic stay in the Colonial BancGroup, Inc.

Filed under:
USA, Alabama, Banking, Insolvency & Restructuring, Litigation, Morrison & Foerster LLP, Bankruptcy, Debtor, Unsecured debt, Debt, Liability (financial accounting), Depository institution, Deposit insurance, US Securities and Exchange Commission, Federal Deposit Insurance Corporation (USA), US Code, United States bankruptcy court
Authors:
Barbara R. Mendelson , Alexandra Steinberg Barrage , Jeremy Mandell , Larren M. Nashelsky
Location:
USA
Firm:
Morrison & Foerster LLP
Living wills: FDIC approves final rules

On Tuesday morning, the Federal Deposit Insurance Corporation (“FDIC”) Board unanimously approved two rules regarding resolution planning: one rule for large bank holding companies and nonbank financial companies supervised by the Federal Reserve Board of Governors (“FRB”),1 and the other rule for large banks.2

Filed under:
USA, Banking, Insolvency & Restructuring, Morrison & Foerster LLP, Board of directors, Federal Register, Federal Reserve Board, Liquidation, Depository institution, Bank holding company, Default (finance), Bank regulation, Systemic risk, Subsidiary, Federal Deposit Insurance Corporation (USA), Financial Stability Oversight Council, Dodd-Frank Wall Street Reform and Consumer Protection Act 2010 (USA)
Authors:
Dwight Smith , Alexandra Steinberg Barrage , Jeremy Mandell
Location:
USA
Firm:
Morrison & Foerster LLP
Resolution plans/living wills - summary of final rule on Orderly Liquidation Authority, and future impacts on financial companies, creditors, potential investors, and senior executives

The July 6, 2011 Federal Deposit Insurance Corporation Board of Directors (the “FDIC Board”) meeting marked the changing of the guard from Chairman Sheila Bair to FDIC Vice Chairman Martin Gruenberg. Chairman Bair’s valedictory meeting was not merely ceremonial; it also covered several key developments regarding the timing of a final rule on resolution plans under section 165(d) of Title I and a final rule on the Orderly Liquidation Authority (“OLA”) under Title II.

A. RESOLUTION PLANS/ LIVING WILLS

Filed under:
USA, Banking, Insolvency & Restructuring, Morrison & Foerster LLP, Shareholder, Board of directors, Debt, Federal Reserve Board, Liquidation, Bank holding company, Advance healthcare directive, Subordinated debt, Financial Stability Board, Federal Deposit Insurance Corporation (USA), Dodd-Frank Wall Street Reform and Consumer Protection Act 2010 (USA)
Authors:
Dwight Smith , Alexandra Steinberg Barrage , Jeremy Mandell
Location:
USA
Firm:
Morrison & Foerster LLP