Services to Financial Institutions
The following engagements are representative of our services to financial institutions.
Foreign Exchange Options Suitability and Risk Disclosure. A large money center bank advised a target client on structuring and executing a series of intermediate-term foreign exchange options. Following an unexpected sharp adverse movement in the market leading to virtual insolvency of the client and protracted litigation, a Bank Experts’ senior consultant provided extensive documentary analysis and guidance to the bank's outside counsel on defending the suitability and risk disclosure by the bank, thereby leading to a successful settlement.
Internet Bank. Following major loan delinquencies, charge-offs and sizable operating losses, the client bank operated under a formal agreement with its primary regulator, the Office of the Comptroller of the Currency (OCC). One of our principals was engaged as interim CEO while another principal assisted on a consulting basis. Over a 1½-year period, strategies were developed and implemented for selling the bank, selling problem loan portfolios, reducing operating expenses and achieving regulatory compliance.
$2.5 Billion Commercial Bank. Before joining Bank Experts, two principals were part of a new senior management team brought in to turn around a bank operating under a formal agreement with the OCC following a $100 million loss representing half of capital. The new management team developed and implemented turnaround plans that addressed nonperforming assets and provided for extensive restructuring of the bank. Over a 2½-year period, market share declines were reversed, nonperforming assets were reduced substantially, and satisfactory asset quality and capitalization ratios were achieved. In its final year before purchase by a major regional bank, pretax ROE of 18% was achieved and the formal agreement with the OCC was released in its entirety.
Largest Commercial Bank in Korea. Two Bank Experts principals completed an engagement to train 250 senior bankers in the corporate banking division of a Korean bank with assets of $85 billion. The objective was to improve the bank’s competitive position in corporate finance, valuations, securitization/structured finance, derivative applications, FX and credit evaluation.
Major Russian Commercial Bank. A Bank Experts principal helped one of Russia’s largest banks design and implement a sound risk management strategy and improve its competitive position.
Largest Saudi Arabian Commercial Bank. Over a five-year engagement, a Bank Experts principal helped the bank refocus its marketing strategies and make needed improvements in loan policies and procedures, expense management, staffing levels and revenue balance between interest-differential and fee income sources.