Bob Schwartz Quoted on Trends in New Bank Formation
Robert A. Schwartz was quoted in the InsuranceNewsNet.com article entitled, "FDIC taking no action on de novos as agency works to help struggling lenders" (May 10, 2011), which suggested that the economy may be on the mend, yet federal regulators appear to be conservative on new bank creation.
"But that doesn't allay the frustration that federal regulators don't reject [new bank] applications, they just sit on them," said Robert A. Schwartz , a partner in the New Brunswick office. He added that the FDIC previously denied slapping a moratorium on bank creation, but at this point, he's advising investors that recapitalizing an existing bank is their best shot, "because it's not clear the FDIC will act" on a de novo application. And those kinds of delays can be costly, Schwartz said: Salaries, rent and other costs continue to mount, and it gets tougher to raise money as the review process drags on.
