What is Banking Law?
The financial industry is heavily regulated by the federal government and each individual state. However, most of the banking laws are created at the federal level, and then the states may impose additional regulations on top of the federal laws. Banking law generally includes information on how banks are formed , the amount of reserves a bank must hold, who may run a bank (including limits on how many banks a person may run), how bank mergers or acquisitions are handled, whether a customer can seek arbitration to resolve a problem with the bank and how to deposit insurance from the FDIC is paid out if the bank fails.
The Importance of a Banking Law Attorney
Banking law is highly nuanced and goes well beyond the commonly known laws governing bank theft and robbery. Lawyers who practice banking law in depth represent borrowers and lending institutions in various capacities regarding the securing of loans, disputes between creditors and debtors, the foreclosure of mortgages and liens, the restructuring of corporations, and the registration, acquisition, or sale of single banks and their branches.
In addition, these lawyers engage in litigation regarding secure transactions, loans on personal property, banking fraud, and taxation of financial institutions (interstate and intrastate). There are a whole host of regulations that apply to banking that can get complicated quickly. A large number of financial establishments, such as national banks, state banks, trust companies, savings associations, credit unions, and small loan companies, have specific legal requirements, as do the lenders who work with them. Failure to comply with these laws can result in substantial legal problems, including litigation.
How to Choose a Qualified Banking Law Attorney
When it comes to hiring an attorney, regardless of the specific practice area, there are numerous factors that must be considered, and these can play an important role in the long term success of your case. In the banking law realm, attorneys must have a specific set of abilities in order to best serve their clients. First and foremost, banking law attorneys must be well-versed in the vast body of regulations that dictate how financial institutions must operate in the United States. Banking regulations specify "prohibited activities," guidance on money laundering, requirements for anti-money laundering programs, and the prohibition of unfair and deceptive practices—which can be the basis of litigation against institutions if they fail to abide by these regulations. An experienced banking law attorney will know the letter of the law in regards to these regulations and be able to ensure that its clients are abiding by the rules. Having experience working in both transactional and litigation matters is another important quality a banking law attorney needs to possess. Transactions are part and parcel of the banking industry; from the sale of bank products to the acquisition or disposition of financial institutions, making sure the deal carry out smoothly is a top priority for any bank. On the other hand, litigation is an unfortunate—but often necessary—part of doing business, so an attorney must have experience litigating the various types of cases that may be brought forth against banks or lenders. Because negotiation is key to both transactions and litigation, it’s essential that your banking law attorney be an effective negotiator. Not all transactions will go off without a hitch; if there are problems in the transaction, a skilled attorney will be able to employ strong negotiation skills to work towards a resolution that is favorable to you.
How to Locate a Banking Law Attorney in Your Local Area
The search for a qualified banking attorney to navigate complex financial transactions can be a daunting task. Luckily, there are several proven strategies you can use to find a qualified, local lawyer to assist you with your transactional or compliance banking law needs. City and state bar association directories are excellent online resources for finding a qualified banking law attorney to help your business. All attorneys who practice in specific states must be members of the bar association of that state. These bar associations regulate licenses for attorneys and require those maintaining such licenses to adhere to certain ethical rules. Client reviews and testimonials are also excellent resources to steer you toward insurers with good reputations. You can search online for law firm ratings, or even call around to see if the attorney you’re considering hiring is in good standing with the local bar association. Sometimes the best place to look for a referral is from someone in the industry. A banker, accountant or financial professional is sure to be able to refer you to highly qualified business attorneys. More than likely they have worked with one or more attorneys in your area, and can point you in the right direction. Utilize all the resources available to you to find a highly qualified banking attorney in your area.
Questions to Consider When Retaining a Banking Law Attorney
You likely have many questions that you want answered before hiring a banking law attorney . The following are some important inquiries you should make regarding their background, experience and availability:
How much do you charge for an initial consultation?
How will you charge us? By the hour, by a retainer or through another method?
Can you provide guidance on the best strategy for handling our case?
What is your negotiation strategy?
What is your litigation strategy?
How many cases like mine have you handled?
What is your success rate with your past cases?
Are you admitted to practice law in our state or jurisdiction?
How often should we expect to communicate while the case is pending?
If you are unavailable, who should we contact in case of an urgent question?
Will I be able to talk to you directly if we choose to work together?
The Influence of Technology on the Field of Banking Law
In an age defined by digitalization and information at our fingertips, the practice of banking law is also experiencing a technological revolution. From the way that contracts are formed to how disputes are resolved, technology has a significant impact on how laws are both enforced and regulated. Digital contracts are becoming increasingly common in the world of banking law. Contracts can now be executed and signed in a matter of seconds through the use of blockchain technology. This technology allows for contracts to be established through an unalterable and transparent system, ensuring that the terms have been met by all parties involved. This digital method streamlines the contract process and reduces the chance for litigation or misunderstanding, creating a smoother transition from negotiations to execution. Additionally, with the rise of the gig economy, banks and small businesses are increasingly turning to freelance workers and independent contractors. Digital contracts are helping these organizations mitigate risk when working with individuals that may not be on long-term payroll. As firms are increasingly turning to artificial intelligence for fast legal research and analysis, it’s important to take note of the current concerns and regulations in place with AI in the legal profession. For years, the legal industry has seen the widespread adoption of document review by attorneys in various fields. More recently, AI has been used as a tool to help identify legal issues and analyze case law. Some attorneys are seeing AI as a threat, while others deem it as an efficient tool to aid lawyers in their work. The legal market is still observing the implementation of AI, and as time goes on, it will be interesting to see whether lawyers become more beneficial to the legal process through the advancement of technology. In addition, technology is also helping with the management of online banking and resolving banking disputes. The online dispute resolution portal, the Canadian Consumer Financial Services Association (CCFSA), offers a service to resolve a variety of disputes regarding banking services, mortgages and loans. The service is completely free to use, and helps to facilitate improvements to banking service and consumer policy as a whole. Online banking platforms have also made this process easier than ever, with apps offering access to statements, bills and other documents right at your fingertips. Services such as e-signatures and email-based contracts are also making banking law easier to both breach and enforce.
Conclusion: Making the Right Decision
When it comes to choosing the right banking law attorney, the decision you make could have a lasting impact on your financial future and your business or personal interests. While it’s important to follow general guidelines, ultimately you should choose the attorney who is the best fit for your specific needs.
In this article, we discussed the different areas of banking law, each of which requires a unique approach by an expert attorney. We also covered questions to ask and qualifications to look for when assessing potential candidates. Finally, we discussed resources such as the Better Business Bureau that can help you identify attorneys with the right skills and track record of success .
Armed with this information, you should now be better prepared to find the right attorney to address your banking law needs. Before making a final decision on which attorney to choose, be sure to check their references, both on and off line, and interview any potential candidates you didn’t initially meet with.
Naturally, the stakes are higher for commercial enterprises than for individuals, but this shouldn’t dissuade anyone from being discerning in their choice of legal counsel. Finding a banking law attorney isn’t just about preventing financial loss or winning a dispute. It’s about establishing a professional relationship with someone who will advocate on your behalf in conflicts, guide you through new opportunities and keep you in the loop on changes in the banking industry.