Recorded September 2, 2009

90 minutes

Agenda | Get log-in |Panelists | Who will benefit | Accreditation

Background

As banks navigate through a difficult environment, many have successfully raised capital to meet regulatory standards. Still, the question remains whether they will have enough capital to support the distressed assets that remain on their balance sheets.

With the portion of the Public-Private Investment Program devoted to buying distressed loans in question, banks still face challenges – how can they get rid of troubled assets? Should they even want to?

Join us for a roundtable discussion -- with an extended Q&A session -- as subject matter experts offer guidance on the current state of bank loan portfolios, the advantages and disadvantages of purging banks’ distressed loans and options for executing.

Agenda

• Explore the current market for loan transactions
• Evaluate the options for unloading distressed assets from bank balance sheets
• Analyze the affects of selling distressed assets on banks’ capital positions
• Investigate the investors’ perspective on purchasing  banks’ distressed loans
• Receive guidance on how to execute a loan sale

Details include

Panelists

Lena Motz, Director, Loan Portfolio Asset Class, CarVal Investors

CarVal Investors is a global leader in managing opportunistic value investments. Founded in 1987 by Cargill, CarVal Investors has quietly acquired more than $25 billion in assets in 3,600 transactions. Ms. Motz manages investments in U.S. commercial and industrial loan portfolios characterized as credit-intensive. Ms. Motz joined CarVal Investors in 2000 as an associate responsible for analysis of investments in commercial mortgages, government receivables and business loans. Prior to joining CarVal Investors, Ms. Motz was a financial analyst and project manager at Springsted Incorporated, a public finance advisory firm in St. Paul, Minnesota. Ms. Motz received her J.D. from William Mitchell College of Law and her B.A. in Finance cum laude from the University Minnesota-Duluth.

Kenneth D. Segal, Senior Vice President, Director of Asset Finance Services, Howe Barnes Hoefer & Arnett

Mr. Segal has nearly 20 years of investment and commercial banking experience, both domestically and abroad. Mr. Segal's expertise is based on optimizing a company's return on its financial assets and ensuring that there is adequate liquidity and capital to support its strategic objectives. Areas of specialization include M&A, strategic spin-offs and partnerships, asset sales and securitizations, interest rate hedging strategies, and sourcing external sources of financing from a broad array of institutional and private investors. Throughout his career, Ken's efforts have resulted in billions of dollars worth of financing solutions for companies of all sizes, from the smallest start-ups to the Fortune 10. Mr. Segal, who previously was a principal with JM Seas, earned his Bachelor's Degree in Chemistry, Magna Cum Laude, from Bowdoin College in 1987 and he holds an M.B.A. in Finance and Accounting from the University of Chicago Graduate School of Business. He holds Series 7, 24 and 63 designations with the FINRA and has served on the Board of Directors for many entities.

Jeff Welch, Chief Credit Officer, Sandy Spring Bank

Mr. Welch brings a Bank Officer's perspective to the topic of disposing of distressed loans.

Prior to joining Sandy Spring Bank ( the largest publicly traded banking company headquartered in Maryland), Jeff was a Senior Vice President and Senior Credit Officer for a large regional bank in the eastern United States. His career in banking spans more than 28 years, during which time he specialized in commercial lending, commercial real estate and loan review. Jeff received a B.S. from Penn State University and an MBA in Finance from Marymount University.

John M. Zimmerman, Loan Sale Advisor, Nautilus Capital

Mr. Zimmerman has been a member of the Nautilus team since 2004. He focuses his efforts on improving the profitability of bank and thrift clients through targeted loan sales. John has had the opportunity to evaluate over $1 Billion in loans during his tenure with Nautilus; has been the lead transaction manager on numerous merger-related portfolio sales; and has assisted the FDIC on structured transactions. He regularly advises financial institutions on current market conditions and new strategies for remaining competitive through active portfolio management. John served as a commercial loan officer with BB&T Bank for many years, and is a graduate of its Management Development Program. He also served as a Vice President and commercial loan officer with Cornerstone National Bank, and on the Credit Committee of Appalachian Development Corporation. In addition, John has substantial experience in commercial real estate sales and property management with Caine Real Estate Group in Greenville, SC. He is a graduate of the University of South Carolina and receive d his M.B.A., with honors, from Clemson University.

Nathan Stovall (moderator), Senior Industry Editor, Financial Institutions, SNL Financial

CFA Institute

1.5 Hours of Continuing Education Credit

SNL Center for Financial Education is registered with CFA Institute as an Approved Provider of professional development programs. This program is eligible for 1.5 CE credit hours as granted by CFA Institute. If you are a CFA Institute member, CE credit for your participation in this program will be automatically recorded in your CE Diary.

Who will benefit

The aim of this program is to provide high-level guidance and strategic insight along with practical examples that may be put to immediate use.

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