Partner Jeff Werthan Quoted in Bank Safety & Soundness Advisor on 2012 Hurdles for Community Banking

Jeff Werthan, Chair of the firm’s Banking Practice, was quoted in an article in the Bank Safety & Soundness Advisor on the 2012 forecast for the nation's community banks. The article discusses rising compliance costs, continued poor earnings, low mergers and acquisitions activity, and other challenges facing the banking industry. "Most bankers feel that the avalanche of regulations and guidance flowing and yet to flow from Dodd-Frank is unmanageable, but for small banks, the problem will be particularly troublesome," Mr. Werthan says. "For the big shops, the good news is that they have internal legal staffs that can be of great value if used wisely."

On the rise of consumerism, Mr. Werthan comments, "In the old days, safety and soundness issues were paramount. While still very important, consumerism now shares the spotlight. This is especially important for shops offering cutting edge … and new innovative credit products, especially to the unbanked, but it is also important to the plain vanilla bank that offers overdraft protection. The agencies also have a new weapon that is as of yet untested, but ready to be deployed: the brand new 'abusive' standard. If banks have any concerns about their credit products, they would be smart to get help now, before their next examination." ("Earnings Challenges, Compliance Burden to Define Community Banking in 2012, Experts Say," December 26, 2011)