Well after the passage of Gramm-Leach-Bliley, many in the banking industry are still pondering whether becoming a financial holding company is the right course of action. Additionally, in the wake of Congress' expansion of permissible bank activities, some financial institutions are questioning whether a holding company structure is necessary at all.

Clients often question whether a financial holding company structure is advantageous. The answer often hinges on a number of complex factors, the impact of which may enhance or limit the scope and direction of an entity's future business strategy. The attorneys at Powell Goldstein who concentrate their practices on holding companies are highly skilled at weighing the pros and cons.

Together, we have helped clients accurately evaluate their need for the following capabilities:

• Redeeming shares

• Limiting liability of directors and providing expanded indemnification

• Issuing stock

• Issuing debt

• Corporate flexibility established in the holding company's structure

• Taking fundamental corporate actions by a majority vote instead of a 2/3 vote

• Acquiring other banks

• Organizing or acquiring non-bank subsidiaries