Enforcement counseling

Aurora Bank, FSB

In our enforcement-related representation of this multi-billion dollar federal savings bank, a wholly-owned subsidiary of Lehman Brothers Holdings, we successfully negotiated the termination of two cease and desist orders previously issued by the Federal banking agencies; negotiated the termination of a Prompt Corrective Action directive issued by the OTS; and following the successful sale of virtually all of the bank's non-cash financial and operational assets and deposit liabilities to third parties, we obtained OCC regulatory approval to convert the federal savings bank to a national bank charter, approval for termination of the bank's deposit insurance from the FDIC, and approval from the OCC to merge the national bank into a surviving non-bank affiliate. As a result, this troubled multi-billion dollar bank, operating under very restrictive enforcement actions, was relieved of the agency-imposed enforcement actions and successfully resolved without loss or cost to the FDIC or the US taxpayer, with hundreds of millions of dollars being returned to the parent company's control.

Email Disclaimer