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Driven by private credit, financial technology, cryptocurrency, and artificial intelligence, the U.S. banking system is changing rapidly. While the spring 2023 banking panic now feels distant, its lessons remain critical. A recent Federal Reserve Bank of New York white paper, reviewing data from 1863 (before FDIC insurance) to the spring 2023 banking panic, argues that bank failures are highly predictable and stem primarily from two drivers: (i) Solvency and (ii) Liquidity .

Banks and bank holding companies issued $45 billion of subordinated debt in the short period from late 2020 through 2022 and a wave of sub debt refinancings is just beginning to reach the market. Are we ready?

Why does Nissan Motor Acceptance Company (NMAC) want a Utah Industrial Bank Charter? Congratulations to Nissan Motor Acceptance Company (NMAC) on its filing for a Utah Industrial Bank Charter and to the crack team led by Mike Nonaka at Covington & Burling for its expertise. It was such a pleasure partnering with them on this important initiative. Established in 1981, NMAC is an American company with consistently profitable operations. NMAC and its American parent, Nissan Nor

What happens to a fintech’s valuation if it becomes a bank? Periodically, Klaros nonbank clients ponder the potential impact on their enterprise valuation if they were to seek a bank charter. Klaros is an advisory and investment firm, so we leave valuation questions to our friends within the investment banking profession, but the following general parameters may be helpful for fintechs and others considering pursuit of a bank charter. 1. Business Model is Key Driver of Valu