Maura O'Connor and Edward Karlin Published in Los Angeles Lawyer
"Take It To The Bank"

Maura O'Connor and Edward Karlin, along with James Bryce Clark, general counsel of OASIS, published the article, "Take It To The Bank," in the October 2009 edition of Los Angeles Lawyer. The article discusses the epidemic of bank failures and how it underscores the need for counterparties to carefully structure their deals with financial institutions. According to the article, the spike in bank failures has significantly increased the probability that a business might be a counterparty to a failed bank in a variety of contractual relationships. In their article, the authors outline the role of the FDIC in resolving bank failures and how it deals with bank counterparties. They note, "The FDIC's process… is driven by its primary goals of maintaining stability and public confidence in the U.S. banking system, and minimizing the government payout of monies from the FDIC insurance fund."

The authors conclude, "No magic bullet will keep a deal with a bank facing regulatory resolution of receivership from being terminated or changed. The legal processes for resolution are complex and discretionary. However, counterparties still can exercise vigilance and take some steps to recognize and protect against risks in their deal structuring with banks."