Regulatory Capital Defense
Close management of regulatory capital levels has never been of greater importance, as bank regulators mandate ever higher reserves and charge-offs while simultaneously increasing minimum leverage ratios for banks coping with non-performing asset and capital issues.
We prepare our bank clients for regulatory examination and also assist them in direct negotiations with bank regulatory authorities on asset quality and regulatory capital issues. Through superior analytics and tireless advocacy for every dollar of our client’s regulatory capital, we have an unrivaled track record of tens of millions of dollars in regulatory capital saved in the current market cycle alone. By managing to the best possible regulatory capital outcome, we buy our clients time to work out their loan and REO problems and strengthen their hand for critically important negotiations with bank regulators and capital markets.
Our specific analytical offerings include our Watchlist Asset Review or WAR Memorandum©, which deliver market leading analysis of NPAs, as follows:
- Non-Performing Loans: Critical analysis and defense of all aspects of credit risk, including:
- FAS 114 specific reserve and/or charge-off
- Loan workout strategy and status
- Legal collection strategy and status
- Risk rating and accrual status
- Real Estate Owned: Critical analysis and defense of:
- Valuation and carrying value
- Management and disposition strategy.
