After lengthy professional careers spent dealing with the bank and thrift regulatory process, O&Co senior personnel possess unique expertise upon which managers, directors and investors can test their ideas and proposals. O&Co's involvement generally includes the review and negotiation of enforcement actions, i.e., Memoranda of Understanding, Cease and Desist Orders, Written Agreements, or Termination of Insurance proceedings.
O&Co has assisted institutions in negotiating "workable" enforcement actions with their primary regulator. Having great familiarity with all types of enforcement actions, O&Co is uniquely positioned to assist in the critical "response" phase. Often, we then assist the institution in complying with certain aspects or requirements of the agreement.
Investors frequently engage O&Co to counsel them in the intricacies of the regulatory process, either before or during their acquisition effort. Experienced former loan examiners provide loan portfolio assessments, workout reviews, pre-examination evaluations and other lending function consulting for banks, thrifts and their owners and directors. Pre-examination work may also include an evaluation of the institution's policies and procedures, including the institution's methodology for reviewing the adequacy of the allowance for loan and lease losses.
O&Co serves institutions and investors by assisting in the analysis and preparation of the documentation necessary for prior approval of mergers or acquisitions, "change-of-control" applications and establishment of de novo banks/branches. Pre-application analysis might cover competitive, antitrust and regulatory implications, or economic and public policy issues. We assist in the preparation of applications and/or briefs for submission to the FDIC, Federal Reserve Board, Office of the Comptroller of the Currency and State Banking Departments. Once filed, we assist in tracking the regulatory filing, including the submission of any additional information, and in representing our client before regulatory agencies.
Regulatory Compliance Assistance
O&Co professionals assist clients in developing a community reinvestment plan. Development of a plan would encompass a review of community reinvestment programs currently in place, programs available in the communities in which the institution conducts business and an assessment of community involvement by the bank or thrift's officials and staff members. O&Co may assist in the documentation of the institution's overall community reinvestment efforts and in the preparation of the annual Community Reinvestment Statement.
Pre-examination assistance is also provided in evaluation of an institution's compliance with consumer regulations that include Fair Lending, Truth in Savings, and Bank Secrecy. O&Co will also assist clients in structuring their response to regulatory reports of examination and enforcement actions specific to consumer compliance and community reinvestment issues.
O&Co is also uniquely qualified to assist boards of directors, audit committees and management in assessing organizational risk determining adequacy of internal controls and in FDICIA and/or Sarbanes Oxley Section 404 compliance.
The process of auditing banks and thrifts with assets above specified thresholds has become much more extensive and involves new responsibilities and exposures for management, audit committees and auditors. The FDICIA statute the FDIC's regulations and Sarbanes Oxley require audit committees to take on statutorily prescribed duties for the first time. These duties include reviewing bank compliance with laws and regulations as well as reviewing auditing and control matters. O&Co provides support to board audit committees seeking independent review and regulatory interpretation for their widely expanded role.