ANNUAL REPORT
2009–2010
mission
The center’s mission is to play a leadership role in the continual evolution
of the financial services industry by:
• Studying the legal and policy issues
related to banking and finance;
• Advancing the teaching of banking
and finance; and
• Sponsoring conferences for industry
professionals.
Photo by Donn Young
Studying Legal and Policy Issues
The Financial Crisis and Financial Reform Legislation
In 2009-2010, the Center for Banking and Finance and director Lissa Lamkin Broome
discussed the financial crisis and the potential Congressional response at a number of programs, including Public Law for the Public’s Lawyers’ continuing legal education (CLE)
program, the Carolina Living Legends’ biannual meeting, UNC School of Law alumni gatherings in New York and Charlotte, the Festival of Legal Learning and a dinner program for
Robinson, Bradshaw & Hinson. Center faculty also responded to numerous media inquiries
related to the financial crisis and regulatory reform efforts.
To keep followers of the center informed of recent developments in the banking industry,
the center compiled a list of online resources that contains links to the Dodd-Frank Act, federal financial regulatory agency RSS feeds and law firm websites and blogs related to financial
regulation. Materials prepared by firms that sponsor the Banking Institute or participate in its
board of advisors are also featured.
Lissa Lamkin Broome, Wachovia Professor of
Banking Law and Director, Center for Banking
and Finance. Photo by Donn Young.
Message from
the Director
The Center for Banking and Finance
enjoyed another successful year and
hopes to continue this success in 2010–
2011. The center continues to strive to
find new and creative ways to serve the
financial services industry and analyze
the new regulatory framework set forth
in the Dodd-Frank Act.
The North Carolina Banking Institute Journal
Volume 14 of the North Carolina Banking Institute (NCBI) journal was published in March
2010 and distributed at the Banking Institute. Eleven third-year students served as editors
and supervised 17 second-year student staff members. Nine students have been elected to
editorial positions and 13 other students have been selected as staff for 2010-2011.Volume 14
included articles on syndicated lending, Ponzi schemes, executive compensation, retirement
savings and mechanized dispute settlements for credit report errors. Fifteen student notes
were published on an array of topics from the foreclosure crisis to the Credit Card Act.
Faculty Scholarship
Faculty associated with the center have published a wide variety of scholarship on issues
related to banking and finance, including important work by Professor Saule Omarova on
derivatives regulation and financial industry self-regulation published in the University of
Miami Law Review and the University of Pennslyvania Law Review.
http://library.law.unc.edu/faculty/pulications/
Sponsoring Conferences
for Practicing Attorneys
and Finance Professionals
North Carolina Bank Directors’ College
The annual North Carolina Bank Directors’
College is sponsored by the center in conjunction with the North Carolina Office of
the Commissioner of Banks and the Federal
Deposit Insurance Corporation (FDIC). Class
XVIII was held in summer and fall 2009 and
consisted of three two-day sessions. Class XIX
was held June 17-18, July 15-16 and Aug. 1213, 2010. Approximately 60 students attend
each year. In 2010, two Banking Commission
members and three potential bank directors
who would add diversity to a board were invited to attend the college. UNC law began
its association with the North Carolina Bank
Directors’ College during the Fall of 2002.
Dan K. Moore Program in Ethics
“Ethical Issues in Troubled Times” was held
Oct. 16, 2009 at the Carolina Club in Chapel
Hill. This program addressed ethics issues for
in-house and outside corporate lawyers. Topics
included managing stress, facing ethical issues
in troubled times, the intersection of ethics
and modern technology and internal and external ethics consultations.
Festival of Legal Learning:
8th Annual Consumer Law and Consumer
Credit Symposium
The Festival of Legal Learning, which includes the Consumer Law and Consumer
Credit Symposium, was held Feb. 5-6, 2010
in Chapel Hill. The symposium consisted of
12 sessions ranging in topics from auto repossession, the foreclosure crisis, credit cards and
overdrafts, debt settlement and foreclosure assistance schemes, the new consumer financial
protection agency, regulation of financial advisors, financial regulatory reform legislation
and the state of state chartered banking. Lissa
Broome, Wachovia Professor of Banking Law
and director of the Center for Banking and
Finance, and Thomas Hazen, Cary C. Boshamer
Distinguished Professor of Law, spoke on
financial regulatory reform legislation.
2010 Banking Institute
cussed how to develop necessary skills, realistic approaches to advancing one’s candidacy,
diverse directors in non-diverse settings and
evaluating companies and opportunities. The
North Carolina State Treasurer’s office was
helpful in identifying potential participants for
the program and plans to assist the initiative in
advancing board diversity among the companies in which it invests state employee pension
funds. WUNC-FM radio featured the program
in a short segment on June 2, 2010.
The 2010 Banking Institute was held March
25-26, 2010 at the Ritz-Carlton in Charlotte,
N.C. It featured presentations by Edward P.
O’Keefe, general counsel of Bank of America Academic Symposium
Corporation; Karen Shaw Petrou, co-founder
and managing partner of Federal Financial Analytics, Inc; and Joseph A. Smith, North Carolina Commissioner of Banks and chairman
of the Conference of State Bank Supervisors.
Panels presented issues of executive compensation, mortgage funding for community banks, An academic symposium, “Board Diversity
private equity capital and financial services and Corporate Performance: Filling in the
regulatory reform efforts, including financial Gaps,” was held April 16, 2010. The program
structure, systemic risk and their impact on was jointly sponsored by UNC School of Law,
consumers. There were 214 speakers, students, Duke Law School’s Center on Law, Race and
law school personnel and invited guests in at- Politics, and Duke Energy. Scholars from varitendance. Thirty-seven firms, banks and other ous disciplines addressed issues of how corcompanies participated as corporate sponsors.
porate board diversity—particularly gender,
ethnic and racial diversity—affects board processes and corporate performance. The papers
from the symposium will be published in VolDirector Diversity Initiative ume 89 of the North Carolina Law Review
The Director Diversity Initiative (DDI) is a in 2011. The symposium was organized by
joint project of the center and the UNC Cen- Professors Lissa Broome and John Conley of
ter for Civil Rights and focuses on increasing UNC School of Law and Professor Kimberly
racial, ethnic and gender diversity on corpo- Krawiec of Duke Law School.
rate boards through the guidance and advice
of a working group of academics and business Regulatory Advocacy
professionals. The initiative received its start-up Professors Lissa Broome and Thomas Hazen
funding from the Z. Smith Reynolds Founda- filed a comment letter with the SEC in Seption and the Fulfilling the Dream Fund: North tember 2009 on its proposed proxy disclosure
Carolina Consortium. Find the e-newsletter at rule and are currently examining the effects of
the SEC’s final proxy disclosure rule regarding
https://ddi.law.unc.edu/newsletter/.
how boards consider diversity when nominating new directors. They have compared the
Training Programs
On June 1, 2010, the DDI held its fifth an- proxy statements filed after the rule became
nual one-day program, “Broadening Corpo- effective with those filed by the same comrate Board Diversity: Earning a Board Seat,” at panies in the prior year, focusing on Fortune
the Rizzo Center in Chapel Hill. Twenty-four 100 companies and the 50 largest companies
diverse potential board members attended the headquartered in North Carolina.
program. Seven panelists and a moderator dis-
www.law.unc.edu/centers/banking AND ddi.law.unc.edu
NC Corporate Board Diversity
Corporate boards in North Carolina are
increasingly diverse, but not as diverse as the
boards of Fortune 100 companies, according to
the results of the 2009 survey conducted by
the DDI. Currently only 12.3 percent of board
members of the largest 50 corporations headquartered in North Carolina are female. Seven
percent of board members are minorities. Only
16 of the boards had at least 25 percent diverse
membership. Eleven companies had no females
or minorities on their boards, down from sixteen companies in 2006.
Database of Potential Diverse Directors
Potential diverse corporate directors and
companies interested in expanding their
pool of potential director nominees to include well-qualified, diverse candidates should
make use of the Database of Potential Diverse
Directors. Register for the database at ddi.law.
unc.edu. To receive names generated from a
search of the database, contact Lissa Broome
at 919.962.7066.
Update on the Beischer
Challenge
George ’66 and Susan Beischer have pledged
a $1 million challenge gift to establish an endowment fund to support the center’s operations. The full gift of $2 million will name
the center for founding director Lissa Broome,
Wachovia Professor of Banking Law, and create an endowment that generates $100,000
per year for center initiatives. The challenge
began on July 1, 2007 and expires June 30,
2011. Cash gifts, multi-year pledges and documented planned gifts received by that date
will be matched by the Beischers. The center
is more than halfway to meeting its goal. Special thanks to those who have contributed. If
you are interested in learning more about the
Beischer Challenge, contact Brandon Wright
at 919.962.6718 or wrightb@email.unc.edu.
Advancing the Teaching of Banking and Finance
Career Trek
The NCBI journal organized the first Banking Journal Career Trek to Charlotte, N.C.,
during fall break on Oct. 22, 2009. Professor Lissa Lamkin Broome, the center’s director,
and a dozen NCBI students traveled to Charlotte to tour the Bank of America trading
floor and meet with Bank of America in-house attorneys and general counsel Ed O’Keefe.
Students also met with attorneys and representatives from the center’s board of advisors
for a lunchtime discussion about careers in banking, corporate and finance industries. The
lunch was hosted by Alston & Bird LLP.
Public Education
The UNC School of Law Center for Banking and Finance, Center
for Civil Rights and Center on Poverty, Work and Opportunity sponsored “The Community Reinvestment Act (CRA): Center Stage”on
Sept. 17, 2009. The program reviewed the 30-year history of the CRA;
the CRA’s role in the subprime mortgage crisis; and how, if at all, the
CRA should be modified in light of the recent economic events. Chris
Kukla, Center for Responsible Lending; Peter Skillern, Community
Reinvestment Association of North Carolina; and Paul Stock, North
Carolina Bankers Association, lent their insight and knowledge to
the panel. A podcast is available for download via iTunes U at
itunes.unc.edu.
Practitioners in Residence
The Practitioners in Residence Program brought Michael Krimminger, Special Policy Advisor
to the Chairman of the FDIC, participated as a practitioner in residence on Nov. 6, 2009,
discussing FDIC policy positions at a lunchtime presentation for law students.
Teaching Materials
Center faculty have published teaching materials for a variety of banking and finance
courses. Professor Thomas Lee Hazen continues his long track record of publishing treatises,
hornbooks and casebooks in the securities regulation and corporate law.
Externships
Externship opportunities with bank regulatory agencies continue to expose students to
real-life practices in government regulations. Brian Soja ’10 externed with the North Carolina Office of the Commissioner of Banks (OCC) and earned 12 hours of academic credit
for the fall 2009 semester. Alumna Elizabeth Peters ’10 externed that semester with the
Securities and Exchange Commission (SEC).
Banking Journal Scholarship Recipients
Carolyn E. Waldrep, editor in chief of Volume 14, received the 2009-2010 banking journal
scholarship. The scholarship is awarded annually to an NCBI editor based on scholastic and
writing ability, as indicated by membership on the NCBI board of editors, and financial
need. The scholarship selection committee included members of the center’s board of advisors, Professor Broome and Patrick M. Aul ‘09, the editor in chief of Volume 13.
www.law.unc.edu/centers/banking AND ddi.law.unc.edu
UNC School of Law
Van Hecke-Wettach Hall
160 Ridge Rd., CB # 3380
Chapel Hill, NC 27599-3380
www.law.unc.edu/centers/banking
Save the Date
2011 Conferences
and Programs
Festival of Legal Learning
Chapel Hill, N.C.
February 11–12, 2011
Banking Institute
Charlotte, N.C.
March 30–April 1, 2011
BOARD OF ADVISORS
For a complete list of representatives, visit
law.unc.edu/centers/banking/staff/advisors/
2010 Banking Institute Sponsors
Sandler O’Neill + Partners, LP
Alston & Bird LLP
Smith, Anderson, Blount, Dorsett, Mitchell &
American Savings Bank
Stifel, Nicolaus & Company, Inc.
BB&T Corporation
The Clearing House
Beischer, Boles & Beischer, PA
The Hutchison Company
Bradley Arant Boult Cummings LLP
Troutman Sanders LLP
Brooks Pierce McLendon Humphrey &
Vorys, Sater, Seymour and Pease LLP
Leonard, LLP
Broadening Corporate
Board Diversity
Chapel Hill, N.C.
June 1, 2011
Bryan Cave LLP
Williams Mullen
Winston & Strawn LLP
Carolina First Bank
Womble Carlyle Sandridge & Rice, PLLC
Davis, Polk & Wardwell LLP
Federal Home Loan Bank of Atlanta
Gaeta & Eveson, PA
Holland & Knight LLP
Hunton & Williams LLP
Jones, Walker, Waechter, Poitevent, Carrere &
Denegre LLP
Kane, Russell, Coleman & Logan PC
For more information,
visit www.law.unc.edu/
centers/banking
and ddi.law.unc.edu
Ward and Smith, PA
Cadwalader, Wickersham & Taft LLP
Debevoise & Plimpton LLP
Bank Directors College
Chapel Hill, N.C.
June 2-3, July 14–15,
August 11–12, 2011
Jernigan, LLP
Bank of America Corporation
Kilpatrick Stockton LLP
Mayer, Brown LLP
Moore & Van Allen, PLLC
Nelson Mullins Riley & Scarborough, LLP
North Carolina Bankers Association
Poyner Spruill LLP
RBC Bank (USA)
Robinson, Bradshaw & Hinson, PA
John Charles Boger ‘74, Dean and Wade Edwards
Distinguished Professor of Law