Our Practice

Product Expansion

Many banks and other financial institutions are seeking sources of fee income from non-banking services. These services include mortgage banking and brokerage, insurance agency, broker-dealer and investment advisory activities.

Banks cannot engage in "commercial" activities, but can engage in activities closely related to banking or in activities deemed to be financial in nature. Sometimes the activity must be performed at the holding company level.

Financial institutions enter these businesses by either de novo entry, acquisition, or through a joint venture with an experienced provider. In the case of de novo entry, we represent financial institutions in obtaining the proper licenses and in the hiring and retention of qualified insurance agents, mortgage loan officers, and licensed securities brokers through employment agreements.

We have acted as legal counsel on a significant number of acquisitions of insurance agencies.

We assist financial institutions in the establishment of joint ventures with mortgage firms, insurance agencies, title companies, broker-dealers, investment advisers, financial advisers, and other financial institutions, including conducting due diligence of the prospective partners and drafting operating agreements and other corporate documents for the joint venture.

We provide legal advice in the development of banking and non-banking products and services that provide our financial institution clients assurances that they are providing such products and services consistent with law, regulations, and guidelines.

We support our clients' efforts to develop and implement strategies to offer a new service, drafting of employment contracts, acquisition agreements and operating agreements, and in establishing separately incorporated subsidiaries or LLCs to carry on the business.