Banking Consultant & Banking Industry Standard Procedures Expert Witness

Banking Expert Witness & Consultant Don Coker

Don Coker, based in the north metro Atlanta, Georgia area, offers nationwide bank consulting and expert witness services - including responding to Regulatory requests such as Cease and Desist Orders - and banking expert witness, subprime mortgage banking expert witness, economic damages, mortgage banking and banking industry standards expert witness opinions, and business, patent, IP, and website valuation consulting services, as well as interim CEO management and interim turnaround management services for financial institutions and businesses of all types and sizes nationwide and worldwide.

Since 1989, Don Coker has been engaged for over 450 cases nationwide for plaintiffs and defendants in banking, mortgage banking, subprime mortgage, credit card, fraud, wrongful foreclosure, force placed insurance, business valuation, economic damages, credit damages, class action, and cases in many related areas; and he is included in the databases of recommended expert witness consultants of BOTH the AAJ and the DRI. Don Coker has been engaged by many entities of the government as their expert witness consultant, 8 of the country's top 10 banks, over 60 banks worldwide including 13 of the top 45 banks in the world, 8 of the country's top 10 mortgage banking companies, 35 of the country's top 250 law firms, and hundreds of other law firms.

Don Coker has testified 108 times and achieved 12 courthouse settlements.

Among a broad array of consulting services offered, Don Coker offers business and professional practice valuation, IP and patent valuation, intangible asset valuation, and website valuation services for all parties including lenders who are faced with disposing of these assets due to foreclosure or repossession.

Banking and Savings and Loan Crisis Interim Turnaround Manager and Consultant and Bailout Expert Consultant

In addition to expert witness work and bank consulting, Don Coker has significant experience as an interim and turnaround restructuring manager of troubled banks during the previous banking crisis and savings and loan crisis in the 1980s and 1990s. Mr. Coker was engaged by the banking regulators to run two insolvent savings and loan associations and two mortgage banking companies (one of which was the largest nationwide FHA Title I lender in the country) in an attempt to effect a bailout of the institutions. Two of the institutions were eventually acquired by Wells Fargo, and the other two were in part sold off on Wall Street and in part favorably liquidated relative to book value. Mr. Coker served as Regulatory Supervisory Agent which was tantamount to an interim CEO and interim Chairman of the board of the financial institutions.

Services

Services offered include banking expert witness, subprime expert witness, banking industry standards opinions, fiduciary duty opinions, good faith opinions, fair dealing opinions, commercially reasonable opinions, mortgage banking industry standards opinions, lender liability, FACTA expert witness, subprime mortgage expert witness opinions, credit card expert witness, credit report expert witness, bank fraud expert witness, check fraud expert witness, credit card fraud expert witness, and all banking areas, offering banking expert witness services to banks, financial institutions, corporations, attorneys, and attorney's individual litigants nationwide. All areas including subprime loans, credit cards, bank fraud, business fraud, checking account fraud, residential real estate, commercial real estate, business and asset valuation, economic damages, financial statements, white-collar crime, due diligence, investment banking, merger, acquisition, international business, wire transfers, credit lines, intangible asset appraisal, IP appraisal, patent appraisal, website appraisal, core deposit intangible appraisal, intellectual capital, savings and loan industry standards, finance, real estate, trusts and estates litigation, probate litigation, money laundering, business ethics. Title insurance policy issues, title insurance industry standards, mortgage loan closing procedures, closing protection letters, closing agent responsibilities, issuing agent responsibilities, real estate mortgage loan settlement procedures, and related title insurance issues.

Areas in which Don Coker has provided opinions and services include Banking Industry Expert, Bank Consultant, Banking Industry Standards, Banks, Bankruptcy Preference, Fiduciary Duty, Commercial Reasonableness, Duty of Care, Good Faith, Honesty in Fact, Bank Policies and Procedures, Directors and Officers Liability Insurance (D&O), Bank Accounts, Anti-Money Laundering, AML, Refco, Credit Damage, Finance, Business Valuation, Asset Appraisal, Intellectual Capital Appraisal, Core Deposit Intangible Valuation, Intangible Asset Valuation, Intellectual Capital, Class Action, Fairness Opinions, Fraud, Embezzlement, Checking Accounts, Credit Card Fraud, Credit Reports, Discounted Cash Flow Analysis, Identity Theft, Wire Transfers, Mortgages, Investments, Securities, Loans, Home Improvement Loans, Economic Damages, Lost Wages, Real Estate Consultant, Commercial Real Estate Feasibility, Hotel Feasibility, Hospital Feasibility, International Business, Lender Liability, Financial Statements, Money Laundering, Trusts, Estates, Probate, Feasibility Studies, Corporate Intelligence, Financial Research, Economic Research, White Collar Crime, Due Diligence, Investment Banking, Mergers & Acquisitions, Corporate Debt Restructuring, Interim Manager, Turnaround Manager, Temporary Manager, Crisis Manager, Corporate Governance, Ethics, Truth in Lending Act, Class Action, Savings and Loan Industry Standards, Check Cashing, Litigation Assistance, Testimony and Expert Witness Services.

Contact Information:

Don Coker
Banking Consultant
423 Latimer Street
Woodstock, Georgia 30188-5052

Tel: (770) 852-2286

Faxes: (509) 678-7756 or (610) 643-7870 or (206) 260-0280 or (419) 517-5284

Global BlackBerry Cell: (251) 716-3200

E-mail: Bankexpert@cs.com

Testimonials

“Don did a good job in the case for which I hired him. He was timely, well organized and very knowledgeable about banks and banking. In his deposition, he was articulate and unflappable. I would not hesitate to hire him again.” - Minnesota Attorney for Delaware case

“That is the best expert report I have ever seen.” - South Carolina Attorney

“That is the best deposition I have ever attended.” - Ohio Attorney (Harvard Law School graduate) at a top 5 law firm

“Your affidavit was so good, the case settled.” - Expert Witness Referral Service

“Based upon your critique of the other side’s expert’s report, they have decided to withdraw their expert from the case.” - New York Attorney

“I’ve never before had an expert that I didn’t have to protect from the Prosecutor.” - Federal Public Defender Attorney, Florida

“I was able to resolve the [Redacted] Bank claim on favorable terms in large measure due to your help” - Georgia Attorney

“Mr. Coker reviewed a case and assisted us in preparing his affidavit that we used in support of a Motion for Summary Judgment. This case settled shortly thereafter, and I believe his affidavit played a significant role.” - Tennessee Attorney

"I enjoyed working with you. You were highly recommended, and I now know why. You did an excellent job. Much appreciation for working so hard on short notice. Hope to have the opportunity to work with you again." - Mississippi Attorney

“I am pleased to advise you that the case with [Redacted] Mortgage Company has settled for confidential terms. We appreciate your assistance in this matter greatly! We will get in touch with you again if we have need of a banking expert in another case.” - Mississippi Attorney

“Just a few minutes ago, we were notified the government decided to withdraw the bank fraud charge. … Thank you very much for your assistance and input into this – it was very useful in leaning on the government to get with the program. I had dropped the hint that I was working with an expert in the field, and I don’t think they liked the sound of that.” - U.S. Air Force Judge Advocate General Corp Attorney, California and Guantanamo Bay, Cuba

“Thanks so much for your diligence on this job, Mr. Coker. I know that the amount of documents was overwhelming.” - Virgin Islands Attorney

“I LOVE this report!!! Thanks!” - Mississippi Attorney

[After your courtroom testimony ...] "... the government dismissed the money laundering counts." - Defense Attorney

“Thanks in large part to your affidavit, we were able to settle this case in a favorable amount for our client. … You did a great job.” - Tennessee Attorney

“Enclosed please find a letter from Judge [Redacted] advising Bank [Redacted] that the Judge granted the Bank’s Second Motion for Summary Judgment as to all claims of Plaintiff. … Bank [Redacted] is very pleased with the results it has obtained in this matter.” - Texas Attorney

“You have been highly recommended by some of my partners.” - Mississippi Attorney

“Very pleased. Very strong [report].” - Alabama Attorney

"Now we are registering a joint venture in China with $20,000,000 funding for early clinical detection of infectious diseases and cancer targeting China's market. I thank you again for your valuation that helped us to attract the investors in China." - California DNA and Cancer Medical Research Doctor

"Yes, we managed to settle the case and although I have no concrete proof, I am sure the threat of you coming in as an expert witness made the opposing side accept our offer to settle. For that, I thank you." - Florida Business Owner, Defendant in International Trade and Letter of Credit Case

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Articles

Article 1 of 4

A Primer on Subprime Mortgage Loans, Subprime Lenders, Alt-A Mortgage Loans, Alt-A Mortgage Lenders, Subprime Credit Cards, Subprime Car Loans, and Subprime Lending

By Don Coker, Banking, Management, Valuation, Economic & Real Estate Consultant and Nationwide Expert Witness

How Subprime Mortgages Started

It is universally desirable to own a home. Homeownership is the financial foundation of the economy, and the personal financial foundation of most people.

Several years ago, in order to increase the level of homeownership in the country, mortgage lenders began making what are now called subprime mortgage loans to borrowers who had less than perfect credit histories or who were new to the credit market. The loans are called "subprime" mortgages due to the increased risk present in these loans.

Subprime mortgage loans refer to mortgage loans made to borrowers who have a less than prime credit condition. This less than prime credit condition may be due to a history of past credit or financial problems or simply be reflective of the fact that a person may be new to the world of credit and not have established a credit history. In these circumstances, a subprime mortgage may be the only financing available to these borrowers.

Borrowers with credit scores of 600 and below (650 and below, by some definitions) often will find a subprime mortgage as their only source of mortgage financing. Late payment of bills or declaring bankruptcy could very well place borrowers in a situation where they can only qualify for a subprime mortgage. Accordingly, it is often advisable for people with low credit scores or temporary credit problems to wait for a period of time and build up their credit scores before applying for a mortgage in order to insure they are eligible for a conventional mortgage.

There are other factors that may cause a borrower to fall into the subprime category. For example, some borrowers might be classified as subprime despite having an excellent credit history because they choose not to provide the lender with the opportunity to verify their income or assets stated in the loan application process. Loans of this type are called "œstated income" loans or "stated asset" (SISA) loans or "no income-no asset" (NINA) loans. Due to a subprime lender's perceived higher risk in making these types of loans, the borrower is considered a subprime credit.

Subprime lenders generally regard subprime lending as a "numbers game" where they have to go through many prospective borrower applications in order to weed-out unacceptable risks and determine which applicants represent an acceptable level of risk. In order to deal with the large number of applications, subprime lenders often will use a credit scoring system to determine which applicants are acceptable risks and for which loan programs they may qualify.

In addition to using credit scoring programs to help them sort out the many applications that they receive for subprime loans, subprime lenders often make extensive use of television and Internet advertising to help bring in subprime loan applications. Also, subprime lenders buy lists of potential subprime borrowers and solicit their business by mail or over the Internet.

The reason that subprime lenders go to the trouble of examining large numbers of applications and determining which ones represent acceptable levels of risk is that subprime lenders charge higher interest rates and fees than those charged for non-subprime mortgage loans.

Subprime mortgage loans tend to have a shorter time horizon and fewer opportunities to refinance when interest rates fall than do traditional non-subprime loans.

As of the first half of 2007, approximately 25% of mortgage originations in the United States were classified as subprime.

As of 3Q 2008, 1.35 million homes in the United States were in foreclosure; and 6.99% of all mortgage loans in the country were delinquent, according to the Mortgage Bankers Association. Mortgage loans that were late or in foreclosure stood at 10.27% of all loans and totaled almost $1 trillion.

Alt-A Mortgage Loans

Alt-A mortgage loans are considered to be of a higher quality than subprime mortgage loans but not as high quality as a prime mortgage loan that would qualify for sale to Fannie Mae or Freddie Mac. They can share many structural qualities with subprime loans, but the pricing of Alt-A loans is generally somewhat more favorable to a borrower than that of a subprime loan.

Examples of a typical Alt-A borrower would be one who has an acceptable credit rating but may have trouble verifying income, employment, or assets.

Subprime Mortgage Payment Reset Concerns

The greatest concern regarding subprime mortgages is that the vast majority of them are adjustable rate loans that start out with low "teaser" interest rates or low "teaser" monthly payment amounts that typically expire after the first year or two.

When this "teaser" period expires, the interest rate or payment amount can increase, often resulting in the subprime mortgage borrower being placed in the position of being unable to make the new monthly payments. The typical results are:

The subprime lender has to foreclose on the subprime mortgage, or
The subprime lender has to enter into a workout arrangement with the borrower which usually results in the subprime lender writing down the value of the loan on their books.

In either of these two possibilities, the subprime lender winds up with an investment value that is less than what was reflected on their books before the subprime loan went into default.

Subprime Car Loans

There are estimates that approximately $50 billion in subprime car loans were originated in 2006, the most recent year for which reliable information is available. This accounts for over 19% of all car loans originated during that period.

Subprime car loans include some features that make them as risky as subprime mortgage loans, and some features that make them less risky. For example, mortgage loans are secured by an asset that generally appreciates in value, whereas a car loan is secured by an asset that generally depreciates in value. On the other side of the ledger, mortgage loans are often repaid based upon a variable interest rate and variable payment amount; whereas car loans are more likely to be on a fixed rate and fixed payment amount.

Comparing subprime car loans to prime car loans, we find that subprime car loans are usually repaid over a longer term, require a lower down payment, and are made for a higher loan-to-value ratio than are prime car loans.

In the final analysis, it is believed that subprime car loans carry slightly less risk than do subprime mortgage loans since the retention of the car is often critical in order for the borrower to continue to work. Even so, there is always the possibility that the borrower could walk away from the car and subprime car loan and obtain transportation through another subprime car loan arrangement.

Subprime Credit Cards

Many of the issues of subprime mortgage lending apply as well to subprime credit cards. Today, about 20% of the credit cards issued in the United States are considered to be of subprime quality.

Today, the credit card industry divides customers into the "prime" and "subprime" markets. Borrowers with a credit score in the top tier (and these tiers vary from lender to lender and are adjusted from time to time) may receive a credit card with a line of credit at an interest rate around 12%. Borrowers with a slightly lower credit score may receive a credit card with a line of credit at an interest rate of 15%, and a borrower with an even lower credit score may receive a credit card with a credit line at an interest rate around 17%. These are all considered non-subprime credit card customers.

Interest rates on subprime credit cards can be anywhere in a range from 20% to as high as 35% or so, depending upon the credit history of the borrower. In addition, lenders charge various fees, such as an annual fee and an account maintenance fee, to help offset their increased risk.

Subprime credit card lending began in the 1990s to allow subprime lenders to provide credit cards to customers with less than perfect credit and profit from the higher interest rates and fees that subprime lenders charge for these credit cards. The subprime credit card industry's market goal was to provide a credit card with a line of credit to customers with credit scores in the 500s, little or no credit history, those coming out of a personal bankruptcy and anyone else with a recent history of credit or financial problems.

Subprime credit cards offered to subprime borrowers typically require no security deposit, as do secured credit cards. Credit limits start out very low compared to those in the non-subprime credit card industry, typically in the $100 to $500 credit limit range.

Fees and interest rates are much higher than those for non-subprime credit cards. Likewise, the effect of some terms can be magnified due to the small credit line size. For example, take an overlimit fee of $29.00. This fee is of course a much greater percentage for a subprime credit card line of $500 than it would be for a non-subprime credit card of $5,000.

With these greater rewards for subprime credit card lenders come greater risks. It is reported that subprime credit card companies are writing off losses in the 15% to 17% range versus the average industry loss rate of 6.5%, according to CardWeb; and delinquency rates for subprime card companies average around 10% while those for the rest of the lending industry average around 5%.

Subprime credit card issuers use mass marketing techniques to bring in customers. Mail and Internet new account solicitations exceeded 5 billion in 2006, and were up dramatically from the total in 2005.

Secured Subprime Credit Cards

Those with the lowest credit scores and histories may still qualify for a secured subprime credit card. Essentially, even though a secured subprime credit card looks and, in terms of making purchases, acts like a regular credit card, it is basically a pre-paid card wherein the customer makes a "security deposit" to insure the payment of charges made with the secured subprime credit card.

Actually, the term "subprime" is typically not included in the term of art when discussing secured credit cards; but make no mistake about it, one only has to take a look at the terms of a secured credit card to see that it is a subprime credit card. Typical secured credit card terms include a hefty (in relation to the "credit line") annual fee and require a minimum deposit of from $99 up to $5,000 depending upon the size of the "credit line" granted.

Despite their onerous terms, often a secured credit card is used as the first step for someone who needs to reestablish their credit.

Subprime Debit Cards

Debit cards carry the Visa or MasterCard name and give you the privilege of seeing money fly out of your checking account as soon as you make a purchase. In this way, a debit card is similar to a secured credit card except that the secured credit card essentially pays for purchases from the deposit you made earlier.

Managing a debit card that really does not offer you any credit, and coordinating all of the purchases that you make with your debit card with all of the checks that you write is a management nightmare.

Banks love debit cards because they eliminate the float that customers generally enjoy between the time a purchase is made and the time that the purchase has to be paid for, i.e., when you pay your credit card bill.

About the Author - Banking and Subprime Expert Witness Consultant Don Coker

Mr. Coker provides expert consultation, fact examination and analysis, advice, Affidavits, Declarations, reports, and sworn testimony at deposition and in court for parties engaged in litigation involving subprime mortgage lending, Alt-A mortgage lending, subprime car loans, subprime credit cards, and all areas of banking and finance.

Mr. Coker's expert witness experience and background includes over 400 cases for plaintiffs and defendants nationwide, 98 testimonies, and 12 courthouse settlements in all areas of banking, finance, FACTA issues, real estate, economic damages, identity theft, business valuation, intangible asset valuation, and many related matters going back to 1989. He is privileged to be listed in the databases of recommended expert witness consultants of both the Defense Research Institute and the American Association of Justice.

His clients have included 8 of the country's top 10 banks, over 60 banks worldwide including 12 of the top 45 banks in the world, 34 of the country's top 250 law firms, 8 of the country's top 10 mortgage banking companies, and numerous governmental clients including many banking regulators (FDIC, RTC, FSLIC, and others), IRS, USAID, U.S. Air Force, State of New York, State of Texas, World Bank, International Accounting Standards Board, and hundreds of others.

Mr. Coker's employment experience includes Citicorp and entities that are now JPMorgan Chase Bank, Bank of America, and Regions Financial, as well as Ford Motor Credit and a two-year stint as a high-level governmental financial institution regulator.

Mr. Coker holds a B.A. degree from the University of Alabama, and completed postgraduate education or executive education at Alabama, the University of Houston, Southern Methodist University, Spring Hill College, and the Harvard Business School.

In addition to subprime mortgage and subprime credit card litigation consulting and other banking and finance-related litigation consulting, Mr. Coker provides consulting services in many additional areas including business valuations, business plan writing, feasibility studies, marketing studies, anti-money laundering policies and procedures, policy and procedure manuals for financial institutions and other businesses, merger and acquisition due diligence and assistance, research, and many other related areas.

As part of his wide-ranging consulting activities, Mr. Coker has been called on by clients in 27 countries for work assignments involving over 56 countries.

Mr. Coker is widely published on banking and financial subjects, and is often sought out by the media for interviews and comments.

Mr. Coker serves clients worldwide from his office in the metro Atlanta, Georgia USA area.

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Article 2 of 4

Managing Troubled and Failed Banks for Maximum Advantage

By Don Coker, Banking, Management, Valuation, Economic & Real Estate Consultant and Interim Manager

And, we're back!

Remember the banking meltdown of the mid-1980s to mid-1990s? Here we are twenty years later, except that this time, the vexing problem is single-family residential financing instead of commercial real estate financing.

Institutional Management Considerations

When a financial institution encounters a high volume of problems with a particular loan type or with their entire portfolio, then the institution has to be managed in a highly specialized way in order to address the unique problems with the portfolio. It is not logical to expect that the management that brought the financial institution to its present troubled condition will have the objectivity and the ability to shift gears and properly manage the financial institution and its problems in a manner that will allow it to survive. This is when an experienced interim financial institution manager must be brought in.

Identifying Desirable and Undesirable Assets

From the first day, the interim manager must undertake the matter of getting a handle on the quality of the assets contained in the various segments of the financial institution's asset portfolio. For example, today many institutions have decent quality loans to consumers, businesses, and perhaps also to commercial real estate owners, but have clearly recognizable problems in their single-family, construction, and acquisition and development loan portfolios. The nature and severity of these problems must be estimated, and a plan established and implemented to capitalize on the institution's strengths and to mitigate and shore up its weaknesses.

As one small example that often works, it is sometimes desirable to rent out REO and OREO rather than let them sit, incur tax, insurance, and maintenance expenses, and physically deteriorate without producing any financial return at all. And sometimes, the residential renters turn into purchasers down the line. I have successfully implemented the same renting practice for commercial properties as well. It depends on the circumstances.

A realistic net present value analysis is useful in making these decisions.

Identifying Who Is A Part of the Problem

Another decision area that has to be addressed beginning the first day on the job is the matter of which personnel stay and which ones have to leave. This can best be accomplished by an interim manager brought in to run the institution since he or she will not have any established relationships with the staff that would affect his or her decisions.

Some employees will have an unreasonable attachment to and expectations for some of the troubled assets, usually those assets that they originated. Some employees will refuse to accept that their institution has hit the wall and expect the entire unpleasant situation – including the new interim manager – to simply go away, therefore viewing you as a nuisance. And some employees simply have poor judgment, poor business skills, a poor attitude, and a poor work ethic.

These employee decisions have to be made regardless of the intended future of the institution. Even if the assets of the institution are to be sold off and the institution closed, people who are a part of the problem will be a hindrance in managing the institution and the assets and getting things cleaned up to the point that the assets can be sold. And if the entire institution is to be sold or merged, stripping out the obvious problem personnel beforehand will help facilitate the sale since a purchaser will certainly bring in its own management team that understands the purchaser’s goals and systems.

"Live or Die" Decision

At some point, a decision has to be made as to whether the institution can be salvaged. Keep in mind that in light of the Bear Stearns bailout, Fannie Mae bailout, Freddie Mac bailout, AIG bailout, $700 billion subprime loan bailout, auto industry bailout, and who-knows-what-else-bailouts, it is unlikely that any federal funds will be available to fund a bailout of an institution today. This means that the bank has to be reconstituted into a functioning and workable institution by making prudent adjustments to the present assets and liabilities as well as to assets and liabilities that are added during the reconstitution period.

This does not mean that a new alchemistic accounting trick has to be developed and applied, but rather that Adam Smith-style supply-and-demand and return-on-investment principles need to be reintroduced into the system. How much income will this asset produce over its likely life? What value does this asset's anticipated income stream and residual value have to a likely purchaser? Where are the funds going to come from to purchase this investment?

Regulatory Interface

In addition to all of the aforementioned mountainous jobs, the financial institution's interim manager must interact with the various regulators that have an interest in the bank's welfare. This is no small item since it is common for an institution to be operating under a Cease & Desist Order issued by the banking regulators and specifying various items that the institution must address by certain dates. These items might include an assessment of the bank's staffing and management, maintenance of Tier I capital, reduction of delinquencies, write-offs, creation of a business plan, creation of a plan to reduce exposure to certain problem loans, creation of an ethics policy, etc.

Summary

Managing a troubled or failed financial institution is a tough and lonely job not recommended for the inexperienced, weak or timid. It requires immense experience, imagination, credibility, a sense of strategy, ethics, and a personality that is oriented toward action.

About the Author - Interim Manager Don Coker

Don Coker is a heavily experienced financial institution management professional and former high-level governmental banking regulator who was previously chosen by the banking regulators to serve as an interim manager and in regulatory oversight positions. Based upon extensive experience and achievements in banking and lending at Citicorp and entities that are now Bank of America, JPMorgan Chase Bank, and Regions Financial, he was chosen to serve as the on-site supervisory regulatory agent interim manager for two insolvent financial institutions and two bank-owned mortgage banking institutions. Duties included the hands-on management of $1.8 billion (2009 USD) in assets including hundreds of millions of dollars in troubled assets, and participation in the review and recommendation of various recapitalization, restructuring, and merger plans. Mr. Coker also was called upon by the governmental banking regulators to serve in regulatory oversight positions for various insolvent institutions under the supervision of the banking regulators. In addition, Mr. Coker has been called on numerous times by the governmental banking regulators as well as the IRS to serve as their expert witness consultant in various banking litigation matters.

Mr. Coker is active in litigation consulting, serving as an expert witness consultant in over 430 cases since 1989, and has testified 106 times. He has been engaged by hundreds of law firms including 34 of the country's top 250. In addition, he has been engaged by 8 of the country's top 10 banks, over 60 banks worldwide including 12 of the top 45 banks in the world, and 8 of the country's top 10 mortgage banking companies.

In addition to litigation-related work, Mr. Coker is active in performing business valuations, IP valuations, core deposit valuations, feasibility studies, marketing studies, business plans, anti-money laundering consulting, and advising investment funds on banking matters.

Mr. Coker's work has involved clients in 27 countries and work covering over 56 countries. He serves clients worldwide from his office in the northern metropolitan Atlanta area, and can be reached at Bankexpert@cs.com or at (770) 852-2286.

Article 3 of 4

The Facts on FACTA: A Note Regarding Current FACTA Litigation and FACTA Expert Witness Consulting

The United States Congress passed the Fair and Accurate Credit Transactions Act (commonly referred to as the FACT Act or FACTA); and FACTA was signed into law on December 4, 2003, and went into full effect on December 4, 2006. An important part of FACTA deals with the truncation of personal confidential financial information from printed credit card receipts. FACTA requires the truncation or masking of all of the credit card account number except for no more than the last five digits and the truncation or masking of the entire credit card expiration date. The vast majority of retailers do comply with FACTA and show on their printed credit card receipts only the last four digits of the credit card account number and none of the expiration date.

It is an inexplicable and unfortunate fact that many retailers willfully have chosen to ignore the clear credit card receipt account number and expiration date truncation requirements of FACTA and therefore needlessly subject their customers to the possibility of becoming identity theft victims.

Even though it is a proven fact that the costs of compliance with FACTA's credit card account number and expiration date truncation requirements are small, the possible resulting damages to a customer who becomes an identity theft victim due to a retailer willfully ignoring the requirements of FACTA are huge.

Likewise, it is in the best economic interests of retailers to make sure that their IT systems are set up to issue credit card receipts that comply with the credit card account number and expiration date truncation requirements of FACTA. Mr. Coker is available to consult with retailers and IT companies who need assistance in modifying their IT systems so that the credit card receipts they issue conform to the requirements of FACTA.

Mr. Coker provides FACTA expert witness services, consultation, examination and analysis of the facts of a case, advice, Declarations, reports, and sworn testimony in deposition and court for parties engaged in FACTA litigation.

Mr. Coker's expert witness experience and background includes over 490 cases for plaintiffs and defendants nationwide, 117 testimonies, and 12 courthouse settlements in all areas of banking, finance, real estate, business valuation, intangible asset valuation, and many related matters going back to 1989. He has been engaged by 42 of the country's top 250 law firms and hundreds of others.

Mr. Coker's employment experience includes Citicorp and entities that are now JPMorgan Chase Bank, Bank of America, and Regions Financial, as well as a two-year stint as a high-level governmental financial institution regulator.

In addition to FACTA litigation and other banking and finance-related litigation consulting, Mr. Coker provides consulting services in many additional areas including business valuations, business plan writing, feasibility studies, marketing studies, anti-money laundering policies and procedures, policy and procedure manuals for financial institutions and other businesses, merger and acquisition due diligence and assistance, research, international matters, and many other related areas.

Banking Expert Witness & Banking Consultant's Biographical Data

Curriculum Vitae

Don Coker
Banking, Management, Economic, Valuation & Real Estate Consultant

423 Latimer Street

Woodstock, GA 30188-5052 USA

Telephone: (770) 852-2286

Telecopiers: (610) 643-7870 or (509) 678-7756

Global BlackBerry Cellular: (251) 716-3200

E-Mail: Bankexpert@cs.com

Representative Client List

Banks - Domestic:

American Savings & Loan

BancorpSouth Bank

Bank Insurance & Securities Association

Bank of America

Bank of Bentonville, AR

Bank of Oklahoma

Bank of the Southwest

Bank One (now JPMorgan Chase Bank)

Barnett Banks, Inc.

Beal Bank

Bluebonnet Savings

Capital One Financial Corporation

Charter One Bank, N.A. (Cleveland)

Citigroup

Citizens Bank of Pennsylvania

Community Nat’l. Bank, Midland, TX

Deutsche Bank

Fairwinds Credit Union

Fifth Third Bank

First Bank, Tallahassee, FL

First National Bank of Brewton

First National Bank of Palm Beach

First National Bank of San Marcos, TX

First Tennessee Bank, N.A.

First Union Bank

Firstar/U.S. Bancorp

Flagstar Bank, FSB

HavenTrust Bank

IndyMac Bank, F.S.B.

Iowa Trust & Savings Bank

JPMorgan Chase Bank, N.A.

KeyCorp

Lehman Brothers Bank, FSB

Liberty Bank & Trust Co., New Orleans

MBNA America Bank

Miami Savings Bank

National City (Bank) Corporation

NationsBank

New South Federal Savings Bank

North Fork Bank, NY

Northshore Bank, TX

PanAmerican Bank

Park National Bank (OH)

Plantation Federal Bank

RBS Citizens, N.A.

Republic Security Bank (FL)

Security Federal Bank, SC

Southeast Bank of Miami, FL

Southern Security Bank

Southern Security, F.C.U., TN

SouthTrust Bank

Standard Pacific Savings Bank

Sun Belt Federal Bank, F.S.B.

Sunbelt Savings (now Bank of America)

SunTrust Bank

The Provident Bank, OH (now PNC Bank)

Wachovia Bank

Washington Mutual Bank

Wells Fargo Bank

Western Gulf Savings & Loan (now Wells Fargo)

William E. Wood & Associates (Re: Towne Bank, VA)

Banks – Foreign:

Alpha Bank Romania

AutoVAZBank (Tagliatti, Russia)

Banco Bilbao Vizcaya Argentaria (Bilbao and Madrid, Spain)

Banco Industrial de Venezuela

Bancomer, S.A. (Mexico)

Bank of America - Canada

Bayerische Hypo- und Vereinsbank AG (Munich, Germany)

China Construction Bank (Beijing)

Royal Bank of Canada

Royal Bank of Scotland Group, plc

Tanzania Institute of Bankers

Unicredit Group SpA (Milan, Italy)

Banks – Governmental:

Bank of Tanzania (central bank)

FarmCredit Bank

Federal Reserve Bank of Atlanta

The World Bank

Hedge Funds, Private Equity Funds, Investment Advisors & Managers:

Advisory Research, Inc. (Chicago)

Askox Capital

Bain & Company

Bartholomew & Company, Inc.

(The) Baupost Group, LLC

Brigade Capital Management, LLC

C12 Capital Management, L.P.

Chicago Fundamental Investment Partners, LLC

Davidson Kempner Capital Management, LLC

Deccan Value Advisors, L.P.

Dorchester Financial Securities, Inc.

Eton Park Capital Management

Greywolf Capital Management, L.P.

Highbridge Capital Management (JPMorgan Chase Bank)

Investor Group Services, LLC (Boston)

Linden Advisors, L.P.

PennSchoen & Berland Associates

Perella Weinberg Partners, LP

RMF Ventures, LLC

RS Investments

Sageview Capital, L.P.

Savannah-Baltimore Capital Mgt., LLC

Senator Investment Group, L.P.

RealEstate & Development:

Beacon Properties, LLC

Bosler & Hashioka Developers

Carver Theater, LLC

George B. Kaiser, Forbes 400 List

Greenbelt Property Management

Heartland Development Group

Heritage Motels. Inc.

Holiday Sands Oceanfront Resort, Inc.

ID Development, LLC

International Real Estate Equity Xchange

L&L Construction Company

Ocean-Fairwind, LLC

Oceanside Resorts, Inc.

Ruby Tuesday

Security Properties

Stanford Carr – Ewa Devel. (Hawai‘i)

Sunrise Gardens Apartments,Las Vegas

The King Edward Inn (Canada)

Wal-Mart Real Estate Business Trust

Mortgage Banking Companies:

Allied Mortgage Group, Inc.

Ambassador Mortgage

Aurora Loan Services, LLC

Bank of America Home Loans

Central Mortgage

Chase Home Finance, LLC

CitiFinancial

Countrywide Financial Corporation

Countrywide Home Loans, Inc.

Credit Suisse 1^st Boston Mortgaga Capital

Doral Mortgage Corp.

EMCMortgage Corp

Expanded Mortgage Credit

Federal Home Loan Mortgage Corp.

First California Mortgage, Inc.

First Horizon Home Loans

Franklin Credit

GMAC

Goldome Realty Credit Corp.

Graystone Solutions

Greenpoint Mortgage Funding

Greentree Mortgage

Homecomings Financial Mortgage

Homestar Mortgage

Legacy Financial Corp.

Madison Equity Mortgage Co.

NCC Servicing

NL, Inc., dba RPM Mortgage, Inc.

Nova Financial and Investment Corp.

Ocwen Loan Servicing, LLC

Ocwen Mortgage

Priority Bancorp, CA

Reunion Mortgage, Inc.

Saxon Mortgage

SFG Mortgage

Silver State Mortgage

SunTrust Mortgage, Inc.

Taylor Bean & Whitaker Mortgage

United Mortgage

Victoria Funding Services

Wells Fargo Mortgage Corp.

Western Horizon Mortgage

Governmental:

Bank of Tanzania (central bank)

Cityof Big Bear Lake, California

Cityof Indio, California

Cityof LaQuinta, California

Cityof Loma Linda, California

Cityof New Orleans, Louisiana

Cityof Orange, California

Cityof Palm Desert, California

Cityof Sanger, California

Cityof Springfield, Massachusetts

Coachella Valley Joint Powers Insurance Authority (Riverside, CA)

FDIC

Federal Public Defender’s Office, Fort Lauderdale, Florida

Federal Reserve Bank of Atlanta

Federal Savings & Loan Insurance Corp.

Internal Revenue Service, U.S. Treasury Department

New York Governor George Pataki’s Office of Regulatory Reform

Palm Desert Redevelopment Agency, Riverside County, California

Resolution Trust Corp.

Senator Adlah Donastorg (USVI)

Senator Ronald E. Russell (USVI)

Springfield (Mass.) Leadership Institute

Springfield (Mass.) Public Schools

State of Texas, Savings & Loan Department (Regulators)

Tanzania Revenue Authority

U.S. Agency for International Development (Washington, D.C.; Kiev, Ukraine; Moscow, Russia)

U.S. Air Force (Guantanamo Bay, Cuba) Judge Advocate General’s Corps Office of Special Investigations

U.S. Department of Education, Inspector General’s Office

U.S. Small Business Administration

United Nations Conference on Trade & Development

Weld County, Colorado

Insurance:

Acadia Insurance Company

ACE Limited (Zurich, Switzerland)

AIG

American Casualty Insurance Co.

Arch Insurance Company

CNA

Continental Casualty Insurance Co.

Crum & Forster Managers

Cumis Insurance Society, Inc.

CUNA Mutual Group

EMC (Employers Mutual) Insurance

Erie Insurance Group

First Specialty Insurance Corp.

International Transport Intermediaries Club, Ltd., UK

Liberty Mutual Insurance Co.

Lloyds of London, UK

Military Premium Managers

National Union Fire Insurance Co.

North River Insurance Co.

Philadelphia Insurance

Physicians Life Insurance Company

Physicians Mutual Insurance Co.

Reliance Insurance

Selective Insurance Co. of America

Sentry Select Insurance Company

St. Paul Travelers Insurance Co.

State Farm Insurance Co.

Swiss Re Group (Zurich, Switzerland)

Thomas Miller & Company, UK

Title Industry Assurance Company

Travelers Casualty & Surety Insurance Co. of America

Xerox Financial Services

Zurich American Insurance Company

Private Lenders:

Aztec Financial

Boston Credit Corp.

Central Financial Services

Oak Street Funding, LLC

Pioneer Financial Services

Pioneer Military Lending

Rehabber’s Financial

Royster-Clark Agribusiness

Singer Asset Finance Company

Investment Banks:

BearStearns Companies, Inc.

JPMorgan Securities, Inc., TECM Group

Lehman Brothers Holding, Inc.

Smith Barney (Citigroup)

International:

AvtoVAZ (Russia’s largest car co. – LADA automobiles)

ChinaCinda Asset Management Corp.

Confirmit (Oslo) (PIN Debit Networks)

Extraordinary Commissioner of Parmalat, S.p.A. (Italy)

Hitachi Data Systems (Branding)

HVB Structured Finance, Inc.

Institute for Stock Market and Management (Moscow, Russia)

International Accounting Standards Board Foundation (London)

Kawasaki

Kilimanjaro International (Africa)

Legend Holdings (Beijing, China)

McKinsey & Co. (Seoul, South Korea)

Olympic Cube (Athens, Greece)

Panasonic (ToughBook Computer)

Phivos Karnaos (London & Moscow)

Scorpion International Services, S.A., (Athens, Greece)

Toshiba

Ukrainian Accounting Reform Project (Kiev, Ukraine)

Ventana International Equities (Costa Rica & British Virgin Islands)

Vestas Wind Systems A/S (Denmark)

Zapadnoe Koltze (Moscow, Russia)

Automotive:

Automotive Transfers, Inc.

FordMotor Credit Company

Import Specialists

Lou Sobh Automotive of Jacksonville

Marchese Chevrolet

NAPA Auto Parts

Specialty Motor Cars

TL of Florida, Inc. (Terex & Scania)

Valvoline Oil (Marketing)

Research, Consulting, Referral:

Answers Research, Inc.

(The) Boston Consulting Group

Celent, LLC

(The) Forensis Group

Forrester Research, Inc.

Gerson Lehrman Group (New York, Washington, D.C., Hong Kong, China)

GfK Custom Research

Guidepoint Global Advisors

Hewlett-Packard Co. (was BEI Golembe Consultants, later EDS)

Lightspeed Research

M/A/R/C Research (Health Insurance)

Millward Brown Intelliquest

Primary Insight (London)

Russell Research

Standard & Poors

Summit Research Group

Surgency

Technical Advisory Services for Attorneys

Technical Assistance Bureau

Thomson Reuters

Vista Research

WestLaw Round Table Group

Medical & Healthcare:

Abraham Medical Practice

BlueCross Blue Shield Association

City of Hope Comprehensive Cancer Research Center

Hi-Desert Memorial Hospital, Inc.

Las Cruces Surgery Center

Medical Job Marketplace.com

PAPAnomics (DNA testing patents)

Sta-Home Hospice

Terrace Park Medical Complex

U.S. National Library of Medicine, National Institutes of Health

Title Insurance Companies:

Chicago Title Insurance Company

Fidelity National Financial

Homeland Title Services, LLC

Estates and Trusts:

Warren Ashmann Retirement Trust

Autrey Family Trust

Pensco Trust – Deborah Barber

Pensco Trust – Kenneth Barber

Bingham Trust

Pensco Trust – Bingham

Mary and James W. Borg Estates

Budd Trusts for Minors

Chickering Trust

Clayton Estate

Stella E. Coffman Living Trust

Equity Trust Company FBO Cusimano

Joseph David Estate

George Delp Estate

Grace Delp Estate

Duchesne Estate

Pensco Trust – Fry

John & Pamela Fry Revocable Trust

Estate of Christine C. Garner

Estate of Elsinore Machris Gilliland

Donald Gragg Trust

Griffin Estate

Jeanette Harris Estate

Harlean J. Hart Living Trust

Estate of William R. Heveder, Sr.

Infinity Trust

Helen Jaffa Family Trust

IRA Resources FBO Dohren Jones

J. Exclusives Irrevocable Trust

Hulda Jordy Estate

Magdalena Jordy Estate

Conservator for Lauren Kavajecz

Equity Trust Company FBO Krymis

Sterling Trust Co. FBO Lenets

Pensco Trust –Lillo

Sterling Trust Co. FBO Lingle

Dianne Luckett Self-Directed Trust

Trust Co. of America FBO Malone

Jeanne C. Mauldin Estate

Curtis Mayfield Estate

Moran Trust

Perlmutter Family Revocable Trust

REK Trust

Roger A. Nelson Profit-Sharing Plan

Rogers Estate

Marvin Rose Irrevocable Trust

Ronald E. Scherer, Sr., Trust

Pensco Trust – Schreck

Laura L. Spinti Trust

Bradley & Brian Stephens Trust

Brian Stephens Trust

Stephens Family Trust

Linda Scherer Talbott Trust

Taylor Charitable Remainder Unitrust

Thomas Estate

True Family Intervivos Trust

Sandra D. Walker Revocable Trust

IRA Resources FBO David Wasko

Trust Co. of America FBO Wasko IRA

Estate of John Christopher Werk

White Family Trust

Catherine Yob Estate

Rudolph Yob Estate

Computers, IT, Telcom, Software:

AddStor Software

Alpha Software

Benchmarking Partners

Broderbund Software

ButtonWare Software (PC Calc+)

Cisco Systems

Computer Associates

Crimson Consulting (Software Testing)

DataEase International

Economist Intelligence Unit – IT collaboration systems

Hewlett Packard, Intel Blade Servers

IBM– Lotus Development

In-Stat Market Data Research (WANs)

Intuit, Inc

Keytronics

Microsoft – Office/Visio

NBI Software

Network Software Associates

PeopleSoft, Inc.

ProvidedPath Software, Inc.

Qwest (Telephony)

SAPAmericas, Inc.

Sprint/Nextel

Sungard Availability Services (IT)

Synovate Research (IT)

Timeworks Software

WordStar

Non-Profits:

American Heart Association

Braille Institute of America, Inc.

The Cancer Research Fund of the Damon Runyon-Walter Winchell Foundation

Fundacion Servicio Integral A Jovenes Adolescentes (Ecuador)

Hi-Desert Memorial Hospital, Inc.

The Salvation Army

Publishers:

Barron’s Educational Software

Cliff’s Notes Publishing

Forbes Magazine

Institutional Investor

McGraw-Hill Companies

Prentice Hall Publishing

Simon & Schuster Publishing

Other Clients:

900 Small Business Owners in New Orleans’ Lower 9^th Ward and St. Bernard Parish Damaged by the Ingram Barge during Hurricane Katrina

American Consolidated Credit

American Trade System Cooperative

Anco Merchandising

Andy Beal, Forbes 400 List

Calco Aerospace

Certified H. R. Services, Inc.

Chemonics International

Christian Bay Shipping Company

Colorbay, LLC

Concord Boat Corp.

CreditCare Credit Counseling

CSG Investments, Inc.

Darryl’s Restaurants

Dr. Richard Dombroff

Education Central, Inc. (USVI)

Encore Capital Group, Inc.

Evergreen Pulp, Inc.

Fillette Green Shipping

Fleming Electric Co.

Fraud Discovery Institute

Gary Tharaldson, Forbes 400 List

Greenbelt Claims Recovery , LLC

Hawk Group

Houlihan’s Restaurants

Hundreds of individuals and families

International Payout System, Inc.

Inverelle, Inc.

Jancik Concrete Specialties

Little Tykes Learning Academy

Mansion Club

McGladrey & Pullen, LLP (CPAs)

Midas Financials

Midland Credit Management, Inc.

Midland Funding NCC-2 Corporation

Midland Funding, LLC

Midwest Merger Management

Montgomery Capital Advisors, LLC

Morrison’s Cafeterias

MRC Receivables Corporation

Operative Plasterers & Cement Masons International Association

Ownbey Oil Company

Pacific Western Holdings

Radio Engineering Industries, Inc.

Ralston & Company, P.A., CPAs

Remington Investments

Results Technologies, Inc.

Reynolds Lumber Company

Sansbury Ace Hardware

Sears

Sotheby’s

Southern Freight, Inc.

Southgate Master Fund, LLC

Spectrum Financial Group

StarIsland Entertainment

Tax Express Income Tax Services

The Cura Group, Inc.

Transcontinental Products & Services

Wal-Mart Stores, Inc.

Werk Family Members (Coca Cola heirs)

Westat, Inc.

Books, Publications & News Media

1. Complete Guide to Income Property Financing & Loan Packaging, Prentice Hall, 1984.

2. Self-Management: A Guide to Career Advancement and Development, written under contract for Prentice Hall, 1985.

3. Complete Real Estate Computer Workbook, Technical Editor, Prentice Hall, 1986.

4. The Complete Loan Officers Handbook, presently writing.

5. The Consumer Installment Loan Department, The Clock magazine, July-Aug. 1970.

6. The Customer Accounting Department, The Clock magazine, Nov.-December 1970.

7. The Trust Department, The Clock magazine, February-March 1971.

8. The Savings Department, The Clock magazine, August-September 1971.

9. “How You Can Help Your Client Get a Loan to Finance Real Estate Projects,” Practicing Attorney’s Newsletter, April 1984.

10. Treasury Magazine published by The Economist. Interviewed and quoted in an article written by a U.S. News and World Report Editor, 1991.

11. “Money Laundering: A Dirty Business,” White-Collar Crime Reporter, Oct. 1991.

12. “Getting a Grip on Core Deposit Intangibles,” American Banker newspaper, 1996.

13. “The Dollars and Sense of Business Valuation,” published on the American Bank Attorneys Association, April 1996.

14. “Putting a Cash Value on a Business,” interviewed by Lawyers Weekly, May 6, 1996.

15. “Business Valuation Techniques,” Business Locator, May 1996.

16. “Valuing Businesses,” TAB Letter, Technical Assistance Bureau, June 1996.

17. “Using Business Value to Achieve Ad Valorem Tax Reductions on Commercial Real Estate Properties,” Journal of Property Management, June 1997.

18. What’s Working in Credit & Collection, quoted re: bank drafts, March 1997.

19. “Making Sense of Internet Stock Values,” TAB Letter, July 1999.

20. Africa Today, extensive video coverage by Reuters News Agency of Tanzania Revenue Authority training program, Arusha, Tanzania, March 11, 2001 and other dates.

21. Interviewed by ITV Television Network on the subjects of banking, taxation, economic growth and development, and capitalism in Tanzania, in Arusha, Tanzania, March 16, 2001. Aired nationwide on March 17, 2001, and subsequent dates.

22. Barnesville, Georgia Bank Plans Improvements in Response to State Order, The Atlanta Journal-Constitution, interviewed for an article on banking regulatory policies and procedures, and banking practices, August 21, 2001. Also published by Knight Ridder Newspapers and Tribune Business News viewed March 31, 2011.

23. The Atlanta Journal-Constitution, interviewed for an article on banking practices and procedures to help deter terrorism, September 19, 2001.

24. Collections & Credit Risk, interviewed regarding banking practices, Sept. 20, 2001.

25. The Atlanta Journal-Constitution, interviewed for an article on banking practices and procedures involving funds transfers and money laundering by terrorist groups. September 21, 2001.

26. The Baltimore Sun, interviewed for an article regarding considerations for the future of Allied Irish Banks, PLC’s, American subsidiary Allfirst Bank. May 30, 2002.

27. The Atlanta Journal-Constitution, interviewed for an article on the effects of the Sept. 11, 2001, terrorist events on banking practices and procedures, August 29, 2002.

28. Credit and Collections World magazine and website, interviewed regarding bank account opening practices and identity theft, September 20, 2002.

29. Outside the Lines television show and ESPN.com website, interviewed (not quoted or mentioned) regarding identity theft matters. November 1 - 3, 2002.

30. Lending Intelligence magazine and website, interviewed regarding lending practices and interest rates, November 25, 2002.

31. NBC Evening News, interviewed regarding identity theft, November 25, 2002.

32. Lending Intelligence magazine and website, interviewed regarding credit scoring and loan approval policies and procedures, December 10, 2002.

33. Charlotte Observer newspaper, interviewed regarding bank branching and operations policies, January 21, 2003.

34. Street & Smith’s SportsBusiness Journal, interviewed regarding business ethics and corporate governance issues involving the U.S. Olympic Committee’s Chief Executive Officer, February 25, 2003.

35. Family Finances column that appears in The Boston Herald, the Pittsburgh Post Gazette, the Palm Beach (FL) Daily News, and some Scripps Howard newspapers. interviewed regarding credit card debt matters, September 23, 2003.

36. The Denver Post, interviewed regarding banking economics and bank branching January 21, 2004.

37. Mortgage Lending Compliance Alert, interviewed regarding housing market outlook, economic and interest rate outlook, and lender profitability strategies. Feb. 2004.

38. CFA (Chartered Financial Analyst) Magazine, published by the Association for Investment Research, which recently became the CFA Institute. Interviewed by this professional certification organization that promulgates “standards for investment professionals worldwide” regarding business ethics and corporate governance issues. July/August 2004.

39. Continental magazine, interviewed regarding banking and its effect on economic resurgence, especially as it relates to Ireland. July 6, 2004.

40. European Business School, International University; Schloß Reichartshausen, Germany. Interviewed regarding intellectual property and business valuation techniques. July 24, 2004.

41. SanFrancisco (CA) Daily Journal, a legal newspaper, quoted regarding the alleged bank fraud and credit card fraud factors related to alleged Guantanamo Bay, Cuba, U.S. Air Force translator spy Ahmad Al Halabi, July 28, 2004.

42. Bank Tech & Security Newsletter, provided direction to a bank on the proper way to handle an attempted fraudulent international wire transfer. September 30, 2004.

43. Small Business Times, provided information concerning business valuation issues. September 30, 2004.

44. Mortgage Lending Compliance Alert, interviewed regarding the Bank Secrecy Act and Suspicious Activity Reports (SARs). October 12, 2004.

45. Mortgage Lending Compliance Alert, provided input for an article concerning compliance with the rules and regulations of lending. November 4, 2004.

46. Mortgage Lending Compliance Alert, provided input for an article on the Fair and Accurate Credit Transactions Act of 2003, a/k/a/ FACTA or FACT Act. Mar. 16, 2005.

47. Bank Technology & Security Alert, provided input for a question and answer section regarding online bill paying. April 11, 2005.

48. Mortgage Lending Compliance Alert, provided input for a question and answer section regarding closing costs for home mortgages. May 18, 2005.

49. Newark Star-Ledger newspaper, interviewed on the subjects of check cashing and the need for enhanced identification verification systems. May 26, 2005.

50. Bank Insurance & Securities Marketing Magazine, interviewed regarding ethical training considerations and the Securities & Exchange Commission’s recently enacted Investment Adviser Code of Ethics. June 21, 2005.

51. Mortgage Lending Compliance Alert, provided input for an article regarding the legal, regulatory, and marketing considerations of providing lending services to Spanish speakers. June 21, 2005.

52. Bank Security & Technology, provided input for a question and answer section regarding bank facility security. August 11, 2005.

53. Bank Security & Technology Wire published by Medical Newswire, provided input for an article regarding the security of bank computer systems. November 14, 2005.

54. Chicago Sun-Times, interviewed on bank marketing issues. January 9, 2006.

55. American Prospect Magazine, provided input for an article on business and banking ethics written by a reporter for the Philadelphia Daily News. February 1, 2006.

56. Bank Security & Technology Alert, provided input for a question and answer section regarding bank record retention. February 8, 2006.

57. Chief Executive magazine, CEO Newswire, quoted regarding economic and interest rate projections. March 7, 2006.

58. Chicago Sun-Times, interviewed on checking account issues, March 13, 2006.

59. Not Born Yesterday: How Seniors Can Stop Investment Fraud, United States Senate, Special Committee on Aging. My work was included in the materials presented in testimony by witness Barry Minkow of the Fraud Discovery Institute, March 29, 2006.

60. ABC News/Disney - Miami, FL, interviewed for a national radio broadcast regarding credit card fraud and identity theft issues. April 21, 2006.

61. AML(Anti-Money Laundering) Compliance Alert, provided input for an article about the BankAtlantic money laundering case and anti-money laundering policies and procedures. May 5, 2006.

62. WJNO AM 1290 Clear Channel Radio, West Palm Beach, FL. live on-air telephone interview by John Howe regarding the loss of credit information on 26.5 million veterans. May 23, 2006.

63. Mortgage Lending Compliance Alert, provided input for an article about documentation requirements for closing a loan. June 12, 2006.

64. The Virginian-Pilot newspaper, Provided opinions for an investigation into suspected mortgage and real estate fraud. October and December 2006, and October 12, 2007.

65. Chicago Sun-Times, interviewed and quoted regarding bank economics and ABN Amro’s decision to layoff 900 people at LaSalle Bank in Chicago. December 28, 2006.

66. WSB-TV (ABC), Atlanta, GA, interviewed on television regarding the T.J. Maxx credit file data loss and data losses in general. March 29, 2007.

67. WSB-TV (ABC), Atlanta, GA, interviewed on television regarding credit card and debit card fraud. May 3, 2007.

68. Forbes Magazine and Forbes.com website, interviewed and quoted in an article regarding financial statements and lending practices. August 8, 2007.

69. Chicago Sun-Times, interviewed and quoted on bank marketing issues for an article on retail banking in Chicago. August 24, 2007.

70. The Virginian-Pilot newspaper, Provided opinions about an on-going real estate fraud investigation. October 11, 2007.

71. Financial Commentary on the economy and banking sector, published by TASConsulting in their Consultant Newsletter, October 13, 2008.

72. The Importance of Credit Card Expiration Dates in FACTA Litigation, published on the Gerson Lehrman Group, October 29, 2007.

73. A Primer on Subprime Mortgage Loans, website of Technical Advisory Services for Attorneys, August 20, 2008.

74. Business Valuation, published on Technical Advisory Services for Attorneys, August 20, 2008.

75. Interim and Temporary Management Situations, published on the Gerson Lehrman Group, December 10, 2008.

76. Managing Failed Banks for Maximum Advantage, published on the Gerson Lehrman Group, December 10, 2008.

77. A Primer on Business Valuation, a re-write of an earlier article I wrote, published on the Gerson Lehrman Group, December 11, 2008.

78. A Primer on Subprime Loans, an update of an earlier article I wrote, published on the Gerson Lehrman Group, December 18, 2008.

79. Time Magazine and Time online, interviewed, but not quoted or mentioned, by Bob Chew, re: Banking aspects of the Bernie Madoff scandal, March 19, 2009.

80. Comments on the Legacy Loan Program, published on the FDIC, March 29, 2009.

81. A Banker’s Guide to Effectively Managing and Marketing Foreclosed Real Estate Properties, published on Technical Advisory Services for Attorneys, June 26, 2009.

82. The Facts on the FACTA Clarification Act, published on Technical Advisory Services for Attorneys, June 30, 2009, and on the Harvard Business School’s Executive Education website on LinkedIn, July 9, 2009.

83. A Primer on Intellectual Property Valuation, published on IP Experts.com, July 1, 2009, and on the Harvard Business School’s Executive Education website on LinkedIn, July 9, 2009, and a slight revised version published on the website of the Round Table Group, July 7, 2009, and cited on the website of justia.com viewed on March 31, 2011.

84. Fraud and Litigation Involving Real Estate Closings, Closing Protection Letters, and Title Insurance Industry Standard Practices and Procedures, published on the website

of HG.org on July 3, 2009, and on the Harvard Business School’s Executive Education website on LinkedIn, July 9, 2009; and cited on justia.com viewed March 31, 2011.

85. The Wacky World of Interim Management, published on HG.org, July 9, 2009.

86. Internet Check Scams that Target Attorneys and Law Firms, published on HG.org, July 11, 2009. Also published on the website of the South Carolina Bar Association, www.scsmallfirm.com viewed March 31 2011.

87. How Private Equity Firms Can Profitably Invest in Troubled Banks, published on HG.org, August 1, 2009.

88. Troubled Bank Management 101: A Detailed Analysis of an FDIC Cease and Desist Order, published on HG.org, August 6, 2009.

89. Mortgage Banking and Loan Servicing Industry Standard Practices and Procedures for Forced Placed Insurance, published on the website of HG.org, Aug. 20, 2009.

90. A Primer on Intellectual Property and Intangible Asset Royalty Rates, published on HG.org, September 9, 2009.

91. Bernie Madoff is a Bad, Bad Man, published on HG.org, September 9, 2009.

92. Mortgage Banking and Loan Servicing Industry Standard Practices and Procedures to Consider When Defending Wrongful Foreclosure Cases, published on HG.org, September 10, 2009.

93. Toxic Bank Asset Valuation Principles, published on HG.org, September 13, 2009.

94. Mortgage Banking and Mortgage Loan Servicing Industry Standard Practices and Procedures, published on HG.org, September 24, 2009.

95. Considerations in Defending Banking and Financial Class Action Lawsuits Involving Economic Damages and Credit Damages, published on HG.org, September 26, 2009.

96. Defending Fair Debt Collection Practices Act and Fair Credit Reporting Act Litigation on Purchased Delinquent Debt, published on HG.org, October 26, 2009.

97. Considerations in Defending State Attorneys General Class Action Lawsuits Against Mortgage Lenders, published on HG.org, November 15, 2009.

98. Why We Need Fannie Mae and Freddie Mac, and How to Resurrect them, published on HG.org, November 15, 2009.

99. Litigation Involving Bank Trust Departments, Wealth and Investment Management Nationwide Industry Standards, published on HG.org, Nov. 23, 2009.

100. Bank Security Principles and Issues, published on HG.org, November 23, 2009. Also published on a bank security website maintained by Scorpio Security Services viewed March 31, 2011.

101. Inspections and Broker Price Opinion Industry Standard Practices for the Mortgage Industry, published on HG.org, February 5, 2010.

102. Construction Lending Industry Standard Practices Applicable to Construction Lending Litigation, published on HG.org, February 8, 2010.

103. Bank foreclosure burden soars 324%, interviewed and quoted by the Triangle Business Journal (Raleigh, NC), April 5, 2010.

104. Defending Checking Account and Debit Card Overdraft Fees Lawsuits, published on HG.org, April 8, 2010.

105. Litigation Involving Offshore Banking, Offshore Bank Accounts, Offshore Finance, Trade Finance, and Tax Havens, published on HG.org, May 9, 2010.

106. Letters of Credit, Bills of Lading & International Trade Finance Documentation Issues Important in Litigation, published on HG.org, May 14,2010.

107. Anti-Money Laundering Laws and Practices for Banks, Individuals, and Corporations Involved in AML Litigation, published on HG.org, May 14, 2010.

108. Litigation Over the Calculation & Application of Mortgage Loan Payments & Late Fee Charges & Escrow Accounts, published on HG.org, May 18, 2010. Also published on the website of readerrant.capitolhillblue.com viewed March 31, 2011.

109. In Stingy Market, TrustAtlantic Makes Do with Sliver of Funding, interviewed and quoted by the Triangle Business Journal (Raleigh, NC), May 31, 2010.

110. Measuring Bank Capital and Bank Financial Health, published on HG.org, June 13, 2010.

111. Banking Litigation Involving Check Deposits Made at a “No envelope” or Imaging ATM, published on HG.org, June 14, 2010.

112. Spousal Guaranties in Business Lending Litigation, published on HG.org, June 16, 2010.

113. Banking Litigation Involving Check Fraud, Bookkeeper Embezzlement, and Checking Account Administration Issues, published on HG.org, June 22, 2010.

114. Prosecuting and Defending Bank Director and Officer Liability Litigation Filed by the FDIC, published on HG.org, June 24, 2010.

115. Feds Order Bank to Bolster Capital, interviewed and quoted by the Triangle Business Journal (Raleigh, NC), June 28, 2010.

116. Record or not, troubles sweep smaller banks, interviewed and quoted by the Triangle Business Journal (Raleigh, NC), July 5, 2010.

117. Pace of Georgia bank failures expected to rise, By J. Scott Trubey, The Atlanta Journal-Constitution, July 22, 2010. Also published on Wells Fargo Advisors (viewed on August 7, 2010), on the websites of Keegan Federal Law Firm, Federal Hasson Law Firm, CRE Financial Advisors, and Madison Square Garden Entertainment, all viewed on January 20, 2011.

118. Bad apples in securities spoiling financials for Square 1 Bank, interviewed and quoted by the Triangle Business Journal (Raleigh, NC), August 23, 2010.

119. Economic Substance and Banking Aspects of Custom Adjustable Rate Debt Structure CARDS Tax Shelter Transactions, published on HG.org, August 12, 2010.

120. Former RBC Bank CEO Custer takes helm at VantageSouth, interviewed and quoted by the Triangle Business Journal (Raleigh, NC), August 23, 2010.

121. Mark to Market Considerations in Banking Asset and Liability Valuation and Bank Accounting, published on HG.org, August 31, 2010. Also published as Comment Letter No. 1810-100 by the Financial Accounting Standards Board, FASB, on Sept. 3, 2010.

122. RBCBank leads way as Triangle lenders restructure loans, interviewed and quoted by the Triangle Business Journal (Raleigh, NC), September 13, 2010.

123. Defending Bank Garnishment Litigation, published on HG.org, October 6, 2010, and by Lexis Nexis on lexisweb.com viewed March 31, 2011.

124. Keyindustry sector for North Carolina shrinking, as billions in B of A, Wachovia deposits flow out of Charlotte, interviewed and quoted by the Triangle Business Journal (Raleigh, NC), October 18, 2010.

125. Banking and Mortgage Litigation Involving Missing Loan File Documents and Foreclosure Errors, published on HG.org, October 27, 2010.

126. BB&T leads in foreclosed sites, interviewed and quoted by the Triangle Business Journal (Raleigh, NC), November 5, 2010.

127. Residential Mortgage-Backed Securities Buyback, Putback, and “Robo-Signer” Litigation, published on HG.org, November 3, 2010.

128. Proving a Case in Litigation Against Rating Agencies Standard & Poor’s, Moody’s, and Fitch, published on HG.org, November 7, 2010.

129. Defending Foreclosure Class Action, Mortgage Loan Modification, and Attorneys General Lawsuits, published on HG.org, November, 20, 2010.

130. Banking Industry Standards and Practices for Funds Wire Transfers by Fed Wire, CHIPS, SWIFT, ACH, and EFT, published on HG.org, Nov. 22, 2010. Also published on the website of SpyFu, viewed March 31, 2011.

131. Economic Damages Fundamentals and Industry Standard Practices for Litigation, published on HG.org, November 23, 2010.

132. Economic Damages Factors from the BP Deepwater Horizon Explosion and Oil Discharge into the Gulf of Mexico, published on HG.org, November 24, 2010.

133. Defending Electronic Funds Transfers Act Missing Sticker Litigation, published on HG.org, November 25, 2010.

134. Capital leaders can wiggle out and get payoff, interviewed and quoted in the Triangle Business Journal (Raleigh, NC), November 26, 2010.

135. European Volcanic Ash Cloud Damages Factors that are Important in Damages Calculations and Litigation, published on HG.org, Nov. 25, 2010.

136. Ailing portfolio will greet next Square 1 CEO, interviewed and quoted in the Triangle Business Journal (Raleigh, NC), December 3, 2010.

137. Catastrophic Economic Damages Valuation Methodology Issues in Insurance Claims and Litigation, published on HG.org, December 22, 2010.

138. Bank of America revamping accounts, fees, interviewed and quoted in the Atlanta Journal-Constitution, January 5, 2011. Also published on the website of istockanalyst.com maintained by Wall Street Tools, LLC, viewed March 31, 2011.

139. Bank Suit First to Trail Failures, interviewed and quoted on page D1 of the Atlanta Journal-Constitution, January 23, 2011.

140. Yadkin bank tries hard to get out of SEC’s shadows, interviewed and quoted by the Triangle Business Journal, January 28, 2011.

141. RBC whittles losses, begins hiring in signs of a rebound, interviewed by the Triangle Business Journal, article appeared February 18, 2011.

142. Financial Fraud & Embezzlement Investigations & Prevention in Businesses, Divorces, Estates, Trusts & Probate, published on HG.org, February 20, 2011.

143. Credit Damages Fundamentals for Litigation, published on HG.org, Feb. 23, 2011.

144. Data show local banks still not lending, interviewed and quoted by the Triangle Business Journal, March 4, 2011.

145. Credit Union Litigation Issues Involving Nationwide Industry Standard Practices and Procedures, published on HG.org, March 5, 2011.

146. Economic Factors Important in Noncompete Agreement Litigation, published on hg.org, March 6, 2011.

147. Feds may put Four Oaks under additional scrutiny, interviewed and quoted, Triangle Business Journal, April 22, 2011.

148. Capital Bank headquarters going to Miami, interviewed and quoted in the Triangle Business Journal, April 29, 2011.

149. New rule protects exempted funds from garnishment orders, interviewed, provided input, but not quoted in an article on www.CreditCards.com, May 3, 2011.

150. Automobile Floor Plan Loan Litigation, published on HG.org, May 13, 2011.

151. Owner cleanses Capital’s books of loans, loan provisions, interviewed and quoted, Triangle Business Journal, May 13, 2011.

152. Capital Bank nearly profitable following restructuring efforts, interviewed and quoted, The Business Journal (Greater Triad Area: Greensboro, High Point, Winston-Salem, NC), May 20, 2011.

153. Though securities suffering losses, Square 1 posts profit, interviewed and quoted or paraphrased in the Triangle Business Journal, May 27, 2011.

154. Local community banks’ net income numbers go south, interviewed and quoted in the Triangle Business Journal, May 27, 2011.

155. Four Oaks executives agree to tightened lending rules, interviewed and quoted in the Triangle Business Journal, June 3, 2011.

156. Greystone leaders say bank’s list righted, interviewed and quoted in the Triangle Business Journal, June 10, 2011.

157. ZIP Code Collection Litigation Pursuant to California’s Song-Beverly Credit Card Act and Similar Acts Nationwide, published on HG.org, June 16, 2011.

158. Cardinal Bank parent halts payments of TARP, interest, interviewed and quoted in the Triangle Business Journal, June 17, 2011.
159. Meet David Einhorn: The cutthroat, charitable and possible New York Mets savior, Interviewed and quoted by Wayne Coffey, New York Daily News, July 9, 2011.

160. Business bank KeySource strengthens books, raises more capital, interviewed and quoted in the Triangle Business Journal, July 22, 2011.

161. Harrington Bank on course to switch to state institution, interviewed and quoted or paraphrased in the Triangle Business Journal, July 29, 2011.

162. Four Oaks can’t pay interest without approval from Feds, interviewed and possibly quoted, Triangle Business Journal, August 5, 2011.

163. First Citizens owns Colorado bank it bought … or does it? Interviewed and paraphrased, Triangle Business Journal, August 19, 2011.

164. Foreclosure load getting heavier, not lighter, interviewed and mentioned, Triangle Business Journal, August 26, 2011.

165. Colorado bank failures exceed expectations when measured by assets, interviewed and quoted in the Denver Post, August 28, 2011.

166. In encouraging sign, banks again growing total assets, interviewed and quoted, Triangle Business Journal, September 2, 2011.

167. Defending Elder Financial Abuse Litigation Claims Against Banks and Mortgage Lenders, published on HG.org, September 8, 2011.

168. Capital Bank now fully with North American Financial Holdings, interviewed and quoted, Triangle Business Journal, September 9, 2011.

169. Bank Corporate and Municipal Bond Trustee, Registrar, and Stock Transfer Agent Fiduciary Duty Litigation, published on HG.org, September 16, 2011.

170. First Citizens follows minority vote on pay, interviewed and quoted on corporate governance, Triangle Business Journal, September 16, 2011.

171. Six banks in area continue to face regulatory oversight, interviewed and quoted, Triangle Business Journal, October 28, 2011.

172. Four Oaks will close branch, look for capital, interviewed and quoted, Triangle Business Journal, November 4, 2011.

173. Mixed picture emerges on bank stability, interviewed and quoted, Triangle Business Journal, November 11, 2011.

174. MF Global, Securities, and Commodities Firms’ Industry Standard Fiduciary Duty to Safeguard Clients’ Funds, published on HG.org, November 14, 2011.

175. Greystone Bank may be winding down, interviewed and quoted, Triangle Business Journal, November 18, 2011.

176. PNC planning to become major player in the South, interviewed and quoted, Pittsburgh Business Times, December 2, 2011.

177. Known for its innovative products, PNC poised to storm into Southern states, interviewed and quoted, Triangle Business Journal, December 9, 2011.

178. Finally, bank watchers say bad loan numbers have peaked, interviewed and quoted, Triangle Business Journal, December 23, 2011.

179. Branch closings, back office cuts figure into PNC cost cuts, interviewed and quoted, Triangle Business Journal, January 13, 2012.

180. Subordination Agreement Nationwide Industry Standard Practices and Procedures Important in Banking Litigation, published on HG.org, January 18, 2012.

181. Where PNC places regional exec being closely watched, Triangle Business Journal, February 3, 2012.

182. Repurchase and Buyback Demands, Representations and Warranties Claims in Residential Mortgage Backed Securities, published on HG.org, February 5, 2012.

183. Robo-signing indictment adds to LPS woes, interviewed and quoted, Jacksonville (Florida) Business Journal, February 10, 2012.

Patent

On July 8, 2002, the United States Patent & Trademark Office registered a Provisional Patent to Don Coker for a business process for improving the prevention and detection of financial fraud involving personal and business checks, cashier’s checks, postal and commercial money orders, letters of credit, bills of exchange, drafts, and many other types of financial instruments. On July 1, 2003, the formal Patent Application was filed. A sale agreement (including a retained profit participation) assigning (selling) this Pending Patent Application was executed in December 2006; closed in early 2007, and the technology was licensed to multiple parties beginning in 2007 and most recently licensed to Samsung and HTC (a Taiwan cell phone manufacturer) in 2010.

Past Professional Memberships

American Bankers Association

American Institute of Banking, Chapter Officer and Bank Consul

U.S. League of Savings Institutions

Institute of Financial Education, Instructor

Mortgage Bankers Association

Texas Mortgage Bankers Association

American Council of State Savings Supervisors

American Bankruptcy Institute - Committees: Public Companies, Real Estate, International, U.C.C., Commercial Fraud Taskforce, Healthcare.

Board of Realtors

National Association of Homebuilders

International Council of Shopping Centers

Houston (TX) Chamber of Commerce, Economic Development Committee, 9 years

Recognition in Biographical Reference Books

Who’s Who in America, 52^nd – 60^th, 63^rd - 66^th eds.

Who’s Who in the World, 12^th- 16^th, 26^th – 27^th eds.

Who’s Who in Finance & Industry, 26^th – 29^thand 33^rd eds.

Who’s Who in Medicine & Healthcare, 1^st – 8^th eds.

Who’s Who in the South & Southwest, 21^st – 33^rd, and 35^{th -}38^th eds.

Directory of Distinguished Americans, 5^th ed.

Who’s Who Registry of Global Business Leaders, 1993 - 1994 ed.

Who’s Who of Emerging Leaders of America, 3^rd ed.

Who’s Who Registry of Business Leaders, 1994 ed.

Personalities of America, 5th ed.; Personalities of the South, 14^th ed.

Other Professional Activities

Consultant on various economic, valuation, real estate, marketing, banking matters for clients in 46 states, two U.S. Territories, and 30 foreign countries in the Americas, Europe, Asia, the Middle East, and Africa covering work involving 61 countries.

Expert Witness, for plaintiff and defense, listed in the American Association for Justice’s and the Defense Research Institute's databases of recommended consultants, plus state and local databases in at least 18 states and cities.

Engaged for over 490 expert witness cases for plaintiffs and defendants nationwide, testified 117 times and achieved 12 courthouse settlements.

Approved Registered U.S. Government Contractor.

Phillips College, former Adjunct Professor of Business.

Institute of Financial Education, approved Instructor for the educational arm of the U.S. League of Savings Institutions.

Gulf Coast School of Real Estate, Instructor and Course Writer.

Prentice Hall Publishing, Simon & Schuster, Paramount Communications, technical editor and consultant on banking and real estate subjects.

Holiday Inn and Rodeway Inns, Lender Advisory Panels.

Novick’s Money Market Seminars, panelist.

National Directory of Corporate Distress Specialists, approved mgt. consultant.

Licensed Sports Agent, approved by the NCAA, Major League Baseball Players Association, and the AL Athlete Agents Regulatory Commission.

American Arbitration Association, approved Professional Commercial Arbitrator.

State of Texas Real Estate Commission, approved instructor and course author.

Texas Real Estate Broker’s License held for over ten years.

Civic Activities

Katy School District (Houston suburb), Trustee, publicly elective position.

U.S. Army Reserve, 1966-1968, Officer Training, Ft. Bragg, NC; Honorable Discharge.

Nottingham Country Civic Club, officer, 1,500 family neighborhood association.

Sunday School teacher, usher, host.

Member of the High Museum of Art, Atlanta, GA.

Grady Health System – Uncompensated volunteer consultant to the Metro Atlanta Chamber of Commerce’s Greater Grady Task Force studying the financially troubled Grady Hospital and Grady Health System for the purpose of making recommendations to improve the operations and finances of Georgia’s largest hospital and healthcare system and Atlanta’s only Level 1 Trauma Center.

Education

College & University:

University of Alabama, BA, 1968.

Awards and Activities: Gold Merit Key Award for Outstanding Service to the University, Outstanding Army ROTC Platoon Leader Award, numerous publications activities, apartment manager.

University of Alabama, 1968, post-graduate work in finance, economics, real estate, and accounting.

University of Houston, 1973, post-graduate work in finance, valuation, real estate, and law.

Spring Hill College, 1995, masters degree-level liberal arts and ethics courses.

Southern Methodist University, Executive Education courses in commercial real estate finance and securities, loan syndication, construction finance, 1983 - 1984.

Harvard Business School, Executive Education. Certificate in Business Valuation.

Secondary:

University Military School, Mobile, AL. 12-year prep day school. Graduated 1963.

Awards & Activities: Outstanding Student in English, military awards, publications.

Other Professional Education:

American Bankers Association - American Institute of Banking: financial statement analysis, accounting, corporate finance, bank investments, principles of bank operations, bank management, trusts.

National Institute of Real Estate Boards, real estate investment & finance.

International Council of Shopping Centers, shopping center finance & valuation.

National Hospital Ass’n., 1-week workshop, healthcare entity finance & valuation.

Mortg

The following section provides Mr. Coker's qualifications and areas of expertise, experience, and interest.

Introduction

Banking Expert Witness, Management Expert, and Economic Consultant areas of expertise and opinions for Don Coker include Banking Expert Witness, Bank Consultant, Banking Industry Standards Expert Witness, Bank Expert Witness, Banking Law issues, Finance Law issues, Real Estate Law issues, Fair and Accurate Credit Transactions Act - FACTA Expert Witness Consultant, Subprime Expert Witness Consultant, Commercial Reasonableness Expert Witness, Duty of Care Expert Witness, Fiduciary Duty Expert Witness, Good Faith Expert Witness, Honest in Fact Expert Witness, Bank Accounts Expert Witness, Bankruptcy Preference Expert Witness, Anti-Money Laundering, FACTA Compliance Consulting, AML, Refco, Parmalat, Credit Damage Expert Witness, Finance, Business Valuation, Asset Appraisal, Intellectual Capital Appraisal, Core Deposit Intangible Valuation, Intangible Asset Valuation, Intellectual Capital, Class Action, Fairness Opinions, Solvency Opinions, Valuation, Economics, Fraud Expert Witness, Embezzlement, Checking Accounts, Credit Card Fraud Expert Witness, Credit Reports, Discounted Cash Flow Analysis, Identity Theft Expert Witness, Wire Transfer Expert Witness, Mortgages, Investments, Securities, Loans, Home Improvement Loans, Economic Damages Expert Witness, Lost Wages, Real Estate Consultant, Commercial Real Estate Feasibility, Hotel Feasibility, Hospital Feasibility, Medical Economics, International Business, Lender Liability, Financial Statements, Money Laundering Expert Witness, Trusts, Estates, Feasibility Studies, Corporate Intelligence, Financial Research, Economic Research, White Collar Crime, Due Diligence, Investment Banking, Mergers & Acquisitions, Corporate Debt Restructuring, Interim Manager, Turnaround Manager, Corporate Governance, Ethics, Truth in Lending Act, HOEPA, Class Action, Savings and Loan Industry Standards, Commercial Arbitration Neutral, Mediation Neutral, CARDS transactions, Custom Adjustable Rate Debt Structure tax shelter transactions, BLIPS transactions, Bond Linked Issue Premium Structure tax shelter transactions, Bond Linked Investment Premium Strategy tax shelter transactions, Title Company issues, Real Estate Closing issues, and Expert Witness Services.

I. Background:

Since 1986, Don Coker has provided a broad array of consulting services for clients worldwide in the fields of banking, interim management, finance, economics, management, business valuation, accounting, corporate finance, merger and acquisition assistance, due diligence, tangible and intangible asset valuation, feasibility studies, business plans, marketing, and commercial and residential real estate.
Clients in 45 states and 25 foreign countries include many domestic and foreign governmental entities and agencies, law firms, financial institutions, corporations, healthcare entities, organizations, and others
.
Mr. Coker has been engaged many times as a banking expert for governmental entities including the FDIC, RTC, IRS, Federal Home Loan Bank, FSLIC, Federal Reserve Bank, U.S. Agency for International Development, and others.
In addition, Mr. Coker has been engaged by over 50 banks worldwide including Bank of America, Bank One, Citigroup, Wachovia Bank, First Union Bank, SouthTrust Bank, JPMorgan Chase Bank, U.S. Bancorp, Wells Fargo Bank, National City (Bank) Corp., MBNA America Bank, Citizens Bank of PA, Washington Mutual, The Provident Bank, The World Bank, Banco Industrial de Venezuela, Banco Bilbao Vizcaya Argentaria, Bank of Tanzania (central bank), and Bancomer (Mexico).
Mr. Coker assists attorneys representing both Plaintiffs and Defendants in litigation matters,, and he is privileged to be listed in the databases of recommended expert witness consultants of both the DRI and AAJ.
Previous work experience includes over twenty years in virtually all aspects of high-level management in the financial services industry including working as a governmental financial institution regulator and executive positions in banking, savings and loans, credit companies, mortgage banking, and banks engaged in trust, estate, and probate administration.
Mr. Coker serves the consulting and expert witness needs of his clients worldwide from his office in the northern metro Atlanta, Georgia area.

II. Services:

A. Consulting Activities:

Business plan preparation and advice for new and expanding businesses.
Asset valuation, including portfolios of financial assets.
Business valuation.
Business management advice.
Corporate financial structuring and restructuring.
Merger and acquisition advice and due diligence.
Intangible asset appraisal.
Training of banking, business, and governmental leaders worldwide.

B. Expert Witness Consulting and Litigation Assistance:

Expert Witness assistance for attorneys representing both Plaintiffs and Defendants involved in cases covering virtually all areas of banking, checking account operations, deposit operations, lending operations, FACTA, subprime finance, credit card operations, finance, economics, management, business valuation, asset valuation, intangible asset valuation, and commercial and residential real estate, such as:

Banking industry standards and practices.
Banking policies and procedures.
Banking employment matters.
Bankruptcy preference matters.
FACTA - Fair and Accurate Credit Transactions Act matters.
Financial institution officer and director liability.
Check Cashing.
Checking account administration.
Check fraud.
Checking account administration.
Commercial reasonableness.
Credit card fraud.
Credit card account number and expiration date truncation compliance.
Credit card operations and procedures.
Credit damage.
Credit reports.
Duty of care.
Economic damages.
Ethics in Banking and Business.
FACTA issues.
Fiduciary duty.
Financial calculations.
Good faith.
Honesty in fact.
Identity theft.
Lender liability.
Mortgage issues.
Bank trust department, estate, trust, and probate issues.
Business valuation issues.
Investment management performance issues.
Option Arm Issues
Payday Lending.
Reasonableness.
Securities and investments - (Example: Logged 500 hours examining Refco's files, policies & procedures, etc., for ten municipalities who successfully sued Refco.)
Subprime loans, subprime credit cards, subprime mortgages.
Transfer pricing.
Wire transfers.
International funds transfers.
International transactions.
Money laundering.
Russian transactions.
Repossessions and foreclosures.
Asset valuation.
Business valuation.
Intangible asset valuation.
Royalty valuation.
Licensing valuation.

C. Interim and Turnaround Management:

Interim management assignments have included two challenging CEO-type troubled financial institution turnaround assignments for the governmental financial institution regulators.
Additional interim management engagements have included several governmental financial institution regulatory oversight management jobs at troubled financial institutions.
Interim, Turnaround Specialist, Project, Temporary, Restructuring, and Crisis Management services available worldwide on short notice.
New interim management and turnaround engagements (as CEO, only) are considered for all business types worldwide.

D. International Matters:

International business valuation.
International feasibility studies.
International marketing studies.
International business development.
Assistance in international transactions.
Expert witness consulting involving international matters.
Assistance in establishing new offices in any foreign country.
International site selection and acquisition assistance.
International transfer pricing issues.
Interim & turnaround management services available worldwide on short notice.
International Financial Reporting Standards.
Other consultants around the world are available to assist as needed in any international consulting matters.

III. Areas of Services:

A. Banking, Financial Institutions and Mortgage Banking:

Systems Analysis and Improvement
Portfolio Analysis and Valuation
Due Diligence for Acquisitions, Transactions, etc.
Merger Integration Analysis and Assistance
Core Deposit Intangible Analysis
Intangible Asset Valuations
Bank Valuations
Bank Branch Sales and Valuations

B. Corporate:

Business Valuation
Valuation of Parts of a Business
Intellectual Capital Evaluations
Management Consulting
Fairness Opinions
Corporate Financing Assistance
Business Ethics
Interim Management
Real Options Theory Analysis
Business Plans
Feasibility and Marketing Studies
Due Diligence for Acquisitions, Transactions, etc.
Corporate Competitive Intelligence & Data Analysis
Interim Management Services
Turnaround Management Services

C. Economic Valuation:

Intellectual Capital Valuations
Professional Practice Valuations
Economic Damages Estimates: Lost Wages, Lost Profits, etc.
Valuations of stock, intangible assets such as contracts, and special assets
Valuation of Partnership Interests
Royalty Valuation.
Licensing Valuation.

D. Real Estate:

Commercial, Multi-Family, Hospitality, and Development Matters, including Finance
Marketing, Feasibility and Absorption Studies
Ad Valorem Tax Assistance for Commercial Real Estate - Defining the portion of value attributable to superior management, reputation of owner/manager, brand name, and similar factors
Valuation of Partnership Interests

E. International:

Due Diligence for Foreign Market Entry or Expansion
Consulting Advice for Foreign Corporations Wanting to Enter the U.S. Market
Foreign Investment of Foreign Generated Profits
U.S. Investment of Funds of Foreign Corporations
International Corporate Acquisition and Divestiture
International Real Estate Acquisition and Divestiture
International Site Selection and Acquisition
International Transfer Pricing Analysis
Trade - Finding and arranging purchases and sales of resources and products
Marketing - Design and implementation of international marketing plans
Marketing Consulting for Foreign Entities Doing Business in the U.S.

F. HealthCare Industry Matters:

Professional Practice Evaluation
Analysis of Practice and Business Combinations
Analysis and Improvement of Work Processes
Medical Office Building Assistance

G. Hospitality & Travel Industry Matters:

Site Selection and Acquisition Worldwide
Feasibility Studies
Franchise Acquisition Assistance
Quality-check Programs
Property Valuation

H. Marketing:

Market Research and Studies
Brand Name Analysis and Valuation
Product Name Studies
Quality-check Programs

I. Arbitration and Mediation Services:

Arbitration and Mediation of Business, Financial, Economic, and Real Estate Issues
Business Ethics Issues

J. Litigation Assistance:

Litigation Assistance and Support in the areas cited in this web-site
Work with either plaintiff or defendant
Issues Assessments
Damages Estimates: Lost Wages, Lost Profits, etc.
Settlement Advice.
Advice, Reports, Affidavits, Declarations, Calculations, Depositions, and Courtroom Testimony, if necessary

IV. Services and Pricing:

A. Services:

Consultation, reports, research, analysis, feasibility studies, statistical sampling, opinions of compliance with industry standards, financial calculations, file review, portfolio review, due diligence, investment banking transaction assistance, tangible and intangible asset valuation, business valuation, ethics opinions, management oversight, complex litigation assistance and support including deposition and courtroom testimony, writing and answering interrogatories, and preparation of attorneys and witnesses for deposition and trial.

B. Assignment Size and Scope Issues:

Expert witness case assignments involving the review of a large amount of data are common.
Some case assignments have involved the review of over forty file boxes of information.
No case less than 16 hours is accepted.

C. Pricing and Contract Procedures:

Expert Witness Assignments: Billed based upon an hourly rate plus hard expenses.
Consulting Assignments: Each assignment is individually priced to suit the assignment and the client's needs. Typically, consulting assignments are priced based upon a pre-agreed fixed charge paid in advance or in stages, depending upon the nature of the assignment.
Transactional Assignments: Certain other assignments, generally transaction-based, are priced as a percentage of the value of the service performed.
A nonrefundable retainer is standard.
Often, billed travel time is capped in order to help a client control costs.
Travel worldwide is acceptable.
All assignments are memorialized with a one-page front-and-back Consulting Agreement.
Generally, fees and charges are due in advance.

Business Start-up Advice and Services

Advice and services provided for start up businesses and paid for by the issuance of stock in the startup business will be considered on a case by case basis.

Services that can be provided include:

• Business plan preparation.

• Start-up cost estimate.

• Feasibility and market studies.

• Financial structuring and planning.

• Financial projections.

• Site location.

• Merger and acquisition analysis.

• Expansion analysis and planning.

• International activities.

• Management structure planning.

• Cost cutting programs and analysis.

• Management consulting.

Serving clients worldwide from Atlanta, Georgia.

Don Coker - (770) 852-2286

Bankexpert@cs.com

Mr. Coker offers opinions on compliance with nationwide industry standards for the banking, mortgage banking, lending, finance, credit card, and related industries.

Mr. Coker provides expert opinions, affidavits, reports, and testimony on banking and financial matters involving good faith, fair dealing, ordinary care, honesty in fact, and reasonable commercial standards.

Tax shelter expert witness assistance in areas such as CARDS (custom adjustable rate debt structure) tax shelter and BLIPS (bond linked issue premium structure or bond linked investment premium strategy) tax shelter transactions.

He provides consultation, affidavits, written Daubert-compliant reports, and testimony at deposition and in court nationwide for plaintiffs and defendants.

Expert Consulting in Banking Litigation: Why Banks Should Always Use an Expert Witness Consultant

by Don Coker

Banking litigation is usually complex and includes issues that are difficult for the typical juror to understand. Even cases that may at first appear to deal with simple issues, such as checking account cases, actually involve innumerable subsidiary issues that promise to confuse even the most sophisticated juror - and judge, for that matter.

Plaintiffs always hire an expert witness to better understand their case and explain it to a judge and jury. However, many banks are reluctant to hire an outside independent expert witness consultant to assist them in defending their positions. It is only logical that both sides in banking litigation afford themselves the advantage of an outside independent expert witness consultant.

My experience includes extensive work for both Plaintiffs and Defendants in banking litigation, and I am privileged to be listed in the recommended consultant databases of both the American Association for Justice (f/k/a ATLA) and the DRI.

What Banks Do Now

In most cases, a bank on the either the defense or plaintiff side of a lawsuit chooses to do one of three things:

Go it without an expert and try to discredit the other side's expert.
Offer an "expert" that is from within the bank.
Offer an "expert" from the bank down the street.

Unfortunately, all three choices are bad ones for a bank and virtually always cause them to needlessly shoot themselves in the foot. Consider that in choice 1, a bank assumes a defensive position and offers no offensive position, foregoes offering any independent support for its positions, places itself in the undesirable position of badgering the other side's expert - perpetuating the "bully" stereotype that many jurors secretly hold, and give jurors the idea that the bank cannot find any external independent expert to support its positions.

In choice 2, a bank choosing an inside "expert" is kidding itself. By making this choice, a bank is essentially choosing to rely on the risky "We've always done it this way" defense. Plus, the bank is often relying on "expert" testimony from the very employee or employees that carried out the actions that precipitated the lawsuit. Banks that do this do so because they like to have complete control over the witness, and feel that their unwillingness to acknowledge any possible problem renders it moot. However, judges and jurors easily see through this contrived tactic and will never believe that an employee of a bank is going to go into court and say anything negative about the employer that signs their paychecks. Not only does this practice insult the intelligence of the judge and jurors, it damages the bank's defense by depriving it of being able to present an independent and objective opinion that reflects what other banks do in the pertinent circumstances. In-house "experts" simply do not have the required independent credibility and cannot offer the industry-wide experience that can be provided by an external independent expert consultant.

Likewise, choice 3 is ineffective in the same way as choice 2 in regard to the lack of an industry-wide view. And similarly, it is well known that it is unheard of for an employee of one bank to go into court and speak disparagingly against a competing bank down the street. The plaintiff's attorney is offered a fertile field to criticize the "Conspiracy of Silence" theory regarding the purported banking industry policy of bankers not testifying against each other.

It is a mystery and a serious tactical error for a bank involved in litigation not to seek the assistance of an expert witness consultant. There is no reason who banks should feel exempt from this practice that is standard throughout the rest of the world of litigation.

Three Reasons Why Banks Need Expert Consultants

1. A knowledgeable and objective expert consultant can explain the actions taken or not taken by the bank. This is clearly preferable to an explanation by either an insider of the bank or a banker down the street who the jury may think is hoping to protect himself from a similar situation or either earn a quid pro quo for use in future litigation that may be directed toward his own bank.

2. Again, an objective opinion from a qualified outsider regarding the reasonableness of the bank's actions, policies, etc., is more convincing to a jury than a similar opinion voiced by an interested party, such as an in-house expert to or a quid pro quo expert.

3. An expert consultant with broad exposure throughout the banking industry can offer convincing opinions that other banks faced with similar circumstances have correctly chosen the same actions as those chosen by the bank in the instant case.

What Banks Should Do

1. Hire an independent expert consultant who can say that not only what the bank did was correct but that it is done that way elsewhere. Contrast this with the in-house bank "expert" who can only testify about his or her own institution's practices.

2. Be truthful and open with the expert, and grant him or her access to any information they may need or request in order to formulate their opinions.

3. A bank should use its own expert to help find holes in the testimony of the other side's expert. This is particularly helpful during the deposition phase. If a bank has its expert on-hand for the plaintiff expert's deposition, immediate feedback can be offered regarding areas of weakness.

4. If it is decided that the situation is one where the bank will likely have to pay damages, do not hesitate to use an expert to critique the plaintiff's damages estimate.

Summary

Considering that the stakes are usually large in banking cases, and that one loss can precipitate additional similar lawsuits, including a knowledgeable banking consultant in you litigation strategy is a wise choice.

Articles by Don Coker

Click on this link to read: "Repurchase and Buyback Demands, Representations and Warranties Claims in Residential Mortgage Backed Securities Litigation"

http://www.hgexperts.com/article.asp?id=24951

Click on this link to read: "Subordination Agreement Nationwide Industry Standard Practices and Procedures Important in Banking Litigation"

http://www.hgexperts.com/article.asp?id=24636

Click on this link to read: "MF Global, Securities, and Commodities Firms' Industry Standard Fiduciary Duty to Safeguard Clients' Funds"

http://www.hgexperts.com/article.asp?id=23900

Click on this link to read: "Bank Corporate and Municipal Bond Trustee, Registrar, and Stock Transfer Agent Fiduciary Duty Litigation"

http://www.hgexperts.com/article.asp?id=23188

Click on this link to read: "Defending Elder Financial Abuse Claims Against Banks and Mortgage Lenders"

http://www.hgexperts.com/article.asp?id=23128

Click on this link to read: "Automobile Floor Plan Litigation"

http://www.hgexperts.com/article.asp?id=21862

Click on this link to read: "Zip Code Collection Litigation Pursuant to California's Song-Beverly Credit Card Act and Similar Acts Nationwide"

http://www.hgexperts.com/article.asp?id=22206

Click on this link to read: "Credit Damages Fundamentals for Litigation"

http://www.hgexperts.com/article.asp?id=21137

Click on this link to read: "Credit Union Litigation Issues Involving Nationwide Industry Standard Practices and Procedures"

http://www.hgexperts.com/article.asp?id=21203

Click on this link to read: "Banking Litigation Involving Check Fraud, Bookkeeper Embezzlement, and Checking Account Administration Issues"

http://www.hgexperts.com/article.asp?id=19161

Click on this link to read: "Proving a Case in Litigation Against Rating Agencies Standard & Poor's, Moody's, and Fitch"

http://www.hgexperts.com/article.asp?id=20357

Click on this link to read: "Prosecuting and Defending Bank Director and Officer Liability Litigation Filed by the FDIC "

http://www.hgexperts.com/article.asp?id=19184

Click on this link to read: "Spousal Guaranties in Business Lending Litigation"

http://www.hgexperts.com/article.asp?id=19116

Click on this link to read: "Litigation Over the Calculation of Mortgage Loan Payments, Late Fee Charges and Escrow Accounts"

http://www.hgexperts.com/article.asp?id=18883

Click on this link to read: "Anti-Money Laundering Laws and Practices for Banks, Individuals, and Corporations Involved in AML Litigation"

http://www.hgexperts.com/article.asp?id=18853

Click on this link to read: "Letters of Credit, Bills of Lading and International Trade Finance Documentation Issues Important in Litigation"

http://www.hgexperts.com/article.asp?id=18850

Click on this link to read: "Economic Damages Fundamentals and Industry Standard Practices for Litigation"

http://www.hgexperts.com/article.asp?id=20502

Click on this link to read: "A Primer on Intellectual Property and Intangible Asset Royalty Rates"

http://www.hgexperts.com/article.asp?id=7145

Click on this link to read: "Residential Mortgage Backed Securities Buyback, Putback, and "Rogo-Signer" Litigation"

http://www.hgexperts.com/article.asp?id=20329

Click on this link to read: "Economic Factors Important in Noncompete Agreement Litigation"

http://www.hgexperts.com/article.asp?id=21226

Click on this link to read: "Litigation Involving Offshore Banking, Offshore Bank Accounts, Offshore Finance, Trade Finance, and Tax Havens"

http://www.hgexperts.com/article.asp?id=18819

Click on this link to read: "Defending Bank Garnishment Litigation"

http://www.hgexperts.com/article.asp?id=20028

Click on this link to read: "Banking and Mortgage Banking Litigation Involving Missing Loan File Documents and Foreclosure Errors"

http://www.hgexperts.com/article.asp?id=20296

Click on this link to read: "Check Scams that Target Attorneys and Law Firms"

http://www.hgexperts.com/article.asp?id=6673

Click on this link to read: "Fraud and Litigation Involving Real Estate Closings, Closing Protection Letters, and Title Insurance Industry Standard Practices and Procedures"

http://www.hgexperts.com/article.asp?id=6632

Click on this link to read: "What Went Wrong at Fannie Mae and Freddie Mac and How to Resurrect Them"

http://www.hgexperts.com/article.asp?id=7595

Click on this link to read: "Toxic Bank Asset Valuation Principles"

http://www.hgexperts.com/article.asp?id=7168

Click on this link to read: "Mortgage Loan Servicing Industry Standard Practices and Procedures to Consider When Defending Wrongful Foreclosure Cases"

http://www.hgexperts.com/article.asp?id=7148

Click on this link to read: "Bernie Madoff is a Bad, Bad Man"

http://www.hgexperts.com/article.asp?id=7146

Click on this link to read: "A Primer on Intellectual Property and Intangible Asset Royalty Rates"

http://www.hgexperts.com/article.asp?id=7145

Click on this link to read: "Mortgage Banking and Loan Servicing Industry Standard Practices and Procedures for Force Placed Insurance"

http://www.hgexperts.com/article.asp?id=6939

Click on this link to read: "Troubled Bank Management 101: A Detailed Analysis of an FDIC Cease and Desist Order"

http://www.hgexperts.com/article.asp?id=6819

Click on this link to read: "How Private Equity Firms Can Profitably Invest in Troubled Banks"

http://www.hgexperts.com/article.asp?id=6787

Click on this link to read: "A Banker's Guide to Effectively Managing and Marketing Bank Owned Foreclosed Real Estate Properties"

http://www.hgexperts.com/article.asp?id=6668

Click on this link to read: "The Wacky World of Interim Management"

http://www.hgexperts.com/article.asp?id=6667

Click on this link to read: "Subprime Lending Fundamentals"

http://www.hgexperts.com/article.asp?id=6666

Click on this link to read: "Credit Card Expiration Dates and FACTA"

http://www.hgexperts.com/article.asp?id=6665

Click on this link to read: "Business Valuation Fundamentals"

http://www.hgexperts.com/article.asp?id=6656

Click on this link to read: "Managing Troubled and Failed Banks for Maximum Advantage"

http://www.hgexperts.com/article.asp?id=6655

Click on this link to read: "A Primer on Intellectual Property Valuation"

http://www.hgexperts.com/article.asp?id=6603

Click on this link to read: "The Facts on the FACTA Clarification Act"

http://www.hgexperts.com/article.asp?id=6599

Click on this link to Read: "Mortgage Banking and Mortgage Loan Servicing Industry Standard Practices and Procedures"

http://www.hgexperts.com/article.asp?id=7232

Click on this link to read: "Considerations in Defending Banking and Financial Class Action Lawsuits"

http://www.hgexperts.com/article.asp?id=7242

Click on this link to read: "Defending Fair Debt Collection Practices Act and Fair Credit Reporting Act Litigation on Purchased Delinquent Debt"

http://www.hgexperts.com/article.asp?id=7438

Click on this link to read: "Defending State Attorneys General Class Action Lawsuits"

http://www.hgexperts.com/article.asp?id=7593

Click on this link to read: "Construction Lending Industry Standard Practices Applicable to Construction Lending Litigation"

http://www.hgexperts.com/article.asp?id=18115

Click on this link to read: "Inspections and Broker Price Opinion Industry Standard Practices for the Mortgage Industry"

http://www.hgexperts.com/article.asp?id=18102

Click on this link to read: "Litigation Involving Bank Trust Departments, Wealth and Investment Management Nationwide Industry Standards"

http://www.hgexperts.com/article.asp?id=7647

Click on this link to read: "Bank Security Principles and Issues"

http://www.hgexperts.com/article.asp?id=7655

Banking, Financial & Investment Terms

ABA Number - A unique identifying transit number assigned to each bank by the American Bankers' Association National Numeric System. The transit number has three parts. The first indicates the federal reserve district and city where the bank is located. The second part indicates the assigned bank number. The third part is a check digit. The transit number appears in the upper right corner of checks as a numerical portion of a fraction.

Authorized Signer - An individual who has the legal right to issue instructions.

Automated Clearing House (ACH) - A computerized facility that performs the clearing of paperless entries between member depository institutions. It is a batch process system that is destined for future settlement of transactions. The ACH will take the transaction information and store it until necessary for payment to occur on the settlement date.

Bearer Bonds - Bonds issued with attachable coupons that must be presented to a paying agent or the Oregon State Treasury for semiannual interest payments. Federal law has prohibited the issuance of bearer bonds since 1982.

Check - A demand draft drawn on the Oregon State Treasury and payable through the Treasury items-processing bank.

Commercial Bank - A full-service institution that offers deposit, payment, and credit services to all types of customers, in addition to other financial services.

Counterfeit Check/Warrant - A copy of a check/warrant cashed as an original. It could be in the form of a photocopy, a newly created check created using the Treasurer’s and agency’s account number, or a scanned, altered and color print of an original.

Debt Service - Cash required at a given point in time for payments of interest and current maturity of principal of outstanding debt.

Discount Fee - A fee quoted as a percentage of the transaction amount.

Dual Control - The segregation of responsibilities to increase internal controls. This procedure requires that two members of the staff be involved in a transaction.

Electronic Funds Transfer (EFT) - Any movement of funds by nonpaper means. EFTs provide various levels of security and the funds are generally available for investment sooner.

Encryption - Encoding transactions at transmission and decoding upon receipt. Encryption is particularly important for applications involving sensitive data such as a wire transfer system.

Endorsement - Signature of the payee made for the purpose of negotiating a check/warrant.

Federal Reserve - The organization created by the 1913 Federal Reserve Act. The system includes the twelve Federal Reserve banks and their branches, plus the member banks which are its legal owners. The Board of Governors, headquartered in Washington, exercises overall control over the nationwide operation of the Federal Reserve System.

Fedwire System - A system whereby debits or credits are processed through the accounts of member institutions at the Federal Reserve. Transfers between banks may be made in federal funds, or excess reserves may be borrowed or loaned.

Forged Check/Warrant - A check/warrant with an endorsement made without the express, implied, or apparent authority of the person whose name is signed.

Handwriting Exemplar - A form used in the forgery process to analyze the signature of a claimant to verify that the claimant's signature was indeed forged on the disputed item.

Imaging - A process which allows paper documents to be scanned, converted to a digital image, and stored for subsequent handling and processing.

Limitation - Authorization from the Legislature to expend monies up to the lesser of the amount of cash on deposit or the amount of a limitation.

Lockbox - A cash management system whereby an agency's customers mail payments to a post office box near the State's bank. The bank collects checks from the lockbox several times a day, deposits them to the Treasury's account, and informs the agency of the deposit.

Merchant Bank Card Services - The ability of an agency to accept a credit or debit card for payment of goods or services.

Midnight Deadline – The time for which Treasury’s presentment bank has to return counterfeit checks/warrants. It is midnight on the next banking day following the banking day on which it receives the item.

MICR - Magnetic Ink Character Recognition. The American Bankers' Association program that provides for encoding of checks and documents with standard characters in magnetic ink so that they can be electronically "read" and processed.

Night Depository - A small vault located on the inside of a bank but accessible to customers outside the bank for depository purposes. It is a convenient service offered to agencies wishing to deposit receipts after regular banking hours.

Pre-encode - To encode the dollar amount of a check on the MICR line prior to depositing the item with a bank.

Prenote - A zero dollar ACH transaction that is used to verify that information contained in the ACH record is correct.

Procurement Card - A bank card used to purchase goods or services.

Repetitive Transaction - Where the sender expects to send funds to a recipient on more than one occasion in the future, and where the only information expected to change in the record is the amount of money sent.

Returned Item - Checks, drafts, or notes that have been dishonored by the drawee or maker and are sent back to the presenting party.

Settlement Date - Date by which a security order must be settled, either by a buyer paying for the securities with cash or by a seller delivering the securities and receiving the proceeds of the sale.

Sorting Services - Services provided utilizing electronic equipment having the ability to read, sort, and process MICR-encoded checks.

Stale-Dated Check/Warrant - A State check/warrant that is past the expiration period stated on the face of the check/warrant.

Suspense Transfer - The transfer of monies from one suspense account to another or from a suspense account to a receipted or subaccount.

Time Certificate of Deposit - Monies held in a financial institution for a fixed term or with the understanding that the depositor can withdraw only by giving adequate notice.

Truncation - A process whereby the items processing bank microfilms redeemed checks/warrants and then destroys the originals. Copies are available for up to seven years from the redeemed date.

Trust Account - All types of accounts handled by a bank's trust department. The can include personal trusts, corporate trust and agency accounts, estates, investment accounts, and others.

Wire Transfer - A transaction by which funds are moved electronically from one bank to another upon a customer's instructions through bookkeeping entries at the two banks.

Don Coker offers expert witness opinions and testimony on compliance with nationwide industry standards for the banking, mortgage banking, mortgage lending, mortgage loan servicing, real estate finance, credit card, subprime credit card, subprime mortgage loan, title insurance, real estate mortgage loan title escrow, and related industries.

Expert witness services are also provided in the areas of mortgage fraud, subprime mortgage fraud, loan fraud, construction loan fraud, credit card fraud, check fraud, title fraud, embezzlement, bank fraud, and financial white-collar crime cases.

Expert witness consultant services extend to calculating economic damages and credit damages.

He provides consultation, affidavits, written Daubert-compliant reports, and testimony at deposition and in court nationwide for plaintiffs and defendants. Over 400 cases. 98 testimonies. 12 courthouse settlements. Widely published. Hired by 33 of the country's top 250 law firms, 8 of the country's top 10 banks, 8 of the country's top 10 mortgage banking companies, 12 of the top 45 banks in the world, and numerous domestic and foreign governmental entities including the FDIC, RTC, FSLIC, FLHBB, Federal Reserve, U.S. Air Force, Tanzanian central bank, International Accounting Standards Board Foundation in London, and many others.

He also provides investigation and forensic analysis services for financial crimes of all types including embezzlement, bank fraud, mortgage fraud, subprime mortgage fraud, loan fraud, financial statement fraud, misapplication of loan funds, insurance fraud, identity theft, data breaches and data intrusions, and white-collar crimes.

Don Coker also offers interim management and turnaround management services for banking, savings, and insurance financial institutions including the management of the disposition and liquidation of foreclosed OREO (Other Real Estate Owned) and REO (Real Estate Owned) properties. His experience includes the management and disposition of thousands of properties of all types.

Articles by Don Coker

Click on this link to read: "Bank Corporate and Municipal Bond Trustee, Registrar, and Stock Transfer Agent Fiduciary Duty Litigation"

http://www.hg.org/article.asp?id=23188

Click on this link to read: "Defending Elder Financial Abuse Litigation Claims Against Banks and Mortgage Lenders"

http://www.hg.org/article.asp?id=23128

Click on this link to read: "Automobile Floor Plan Litigation"

http://www.hg.org/article.asp?id=21862

Click on this link to read: "Zip Code Collection Litigation Pursuant to California's Song-Beverly Credit Card Act and Similar Acts Nationwide"

http://www.hg.org/article.asp?id=22206

Click on this link to read: "Economic Factors Important in Noncompete Agreement Litigation"

http://www.hg.org/article.asp?id=21226

Click on this link to read: "Credit Union Litigation Issues Involving Nationwide Industry Standard Practices and Proicedures"

http://www.hg.org/article.asp?id=21203

Click on this link to read: "Credit Damages Fundamentals for Litigation"

http://www.hg.org/article.asp?id=21137

Click on this link to read: "Financial Fraud and Embezzlement Investigations and Prevention in Businesses, Divorces, Estates, Trusts, and Probate Matters and Litigation "

http://www.hg.org/article.asp?id=21121

Click on this link to read: "Catastrophic Economic Damages Valuation Methodology Issues in Insurance Claims and Litigation "

http://www.hg.org/article.asp?id=20703

Click on this link to read: "European Volcanic Ash Cloud Economic Damages Factors that are Important in Damages Calculations and Litigation"

http://www.hg.org/article.asp?id=20521

Click on this link to read: "Defending Electronic Funds Transfer Act Missing ATM Sticker Litigation"

http://www.hg.org/article.asp?id=20517

Click on this link to read: "Economic Damages Factors from the BP Deepwater Horizon Explosion and Oil Discharge into the Gulf of Mexico"

http://www.hg.org/article.asp?id=20515

Click on this link to read: "Economic Damages Fundamentals and Industry Standard Practices for Litigation"

http://www.hg.org/article.asp?id=20502

Click on this link to read: "Banking Industry Standards and Practices for Funds Wire Transfers by Fed Wire, CHIPS, SWIFT, ACH, and EFT"

http://www.hg.org/article.asp?id=20495

Click on this link to read: "Defending Foreclosure Class Action, Mortgage Loan Modification, and Attorneys General Lawsuits"

http://www.hg.org/article.asp?id=20436

Click on this link to read: "Proving a Case in Litigation Against Rating Agencies Standard & Poor's, Moody's, and Fitch"

http://www.hg.org/article.asp?id=30357

Click on this link to read: "Residential Mortgage-Backed Securities (RMBS) Buyback, Putback, and 'Robo-Signer' Litigation "

http://www.hg.org/article.asp?id=20329

Click on this link to read: "Banking and Mortgage Litigation Involving Missing Loan File Documents and Foreclosure Errors"

http://www.hg.org/article.asp?id=20296

Click on this link to read: "Defending Bank Garnishment Litigation"

http://www.hg.org/article.asp?id=20028

Click on this link to read: "Mark-to-Market Considerations in Banking Asset and Liability Valuation and Bank Accounting"

http://www.hg.org/article.asp?id=19644

Click on this link to read: "Economic Substance and Banking Aspects of Custom Adjustable Rate Debt Structure CARDS Tax Shelter Transactions"

http://www.hg.org/article.asp?id=19557

Click on this link to read: "Prosecuting and Defending Bank Director and Officer Liability Litigation Filed by the FDIC"

http://www.hg.org/article.asp?id=19184

Click on this link to read: "Banking Litigation Involving Check Fraud, Bookkeeper Embezzlement, and Checking Account Administration Issues"

http://www.hg.org/article.asp?id=19161

Click on this link to read: "Spousal Guaranties in Business Lending Litigation"

http://www.hg.org/article.asp?id=19116

Click on this link to read: "Banking Litigation Involving Check Deposits Made at an ATM"

http://www.hg.org/article.asp?id=19075

Click on this link to read: "Measuring Bank Capital and Bank Financial Health"

http://www.hg.org/article.asp?id=19073

Click on this link to read: "Litigation Over the Calculation and Application of Mortgage Loan Payments and Late Fee Charges and Escrow Accounts"

http://www.hg.org/article.asp?id=18883

Click on this link to read: "Anti-Money Laundering Laws and Practices for Banks, Individuals, and Corporations Involved in AML Litigation"

http://www.hg.org/article.asp?id=18853

Click on this link to read: "Letters of Credit, Bills of Lading & International Trade Finance Issues Important in Litigation"

http://www.hg.org/article.asp?id=18850

Click on this link to read: "Litigation Involving Offshore Banking, Offshore Bank Accounts, Offshore Finance, Trade Finance, and Tax Havens"

http://www.hg.org/article.asp?id=18819

Click on this ling to read: "Defending Checking Account and Debit Card Overdraft Fees Lawsuits"

http://www.hg.org/article.asp?id=18605

Click on this link to read: "Check Scam Fundamental Considerations"

http://www.hgexperts.com/article.asp?id=6673

Click on this link to read: "Fraud and Litigation Involving Real Estate Closings, Closing Protection Letters, and Title Insurance Industry Standard Practices and Procedures"

http://www.hgexperts.com/article.asp?id=6632

Click on this link to read: "What Went Wrong at Fannie Mae and Freddie Mac and How to Resurrect Them"

http://www.hgexperts.com/article.asp?id=7595

Click on this link to read: "Toxic Bank Asset Valuation Principles"

http://www.hgexperts.com/article.asp?id=7168

Click on this link to read: "Mortgage Loan Servicing Industry Standard Practices and Procedures to Consider When Defending Wrongful Foreclosure Cases"

http://www.hgexperts.com/article.asp?id=7148

Click on this link to read: "Bernie Madoff is a Bad, Bad Man"

http://www.hgexperts.com/article.asp?id=7146

Click on this link to read: "A Primer on Intellectual Property and Intangible Asset Royalty Rates"

http://www.hgexperts.com/article.asp?id=7145

Click on this link to read: "Mortgage Banking and Loan Servicing Industry Standard Practices and Procedures for Force Placed Insurance"

http://www.hgexperts.com/article.asp?id=6939

Click on this link to read: "Troubled Bank Management 101: A Detailed Analysis of an FDIC Cease and Desist Order"

http://www.hgexperts.com/article.asp?id=6819

Click on this link to read: "How Private Equity Firms Can Profitably Invest in Troubled Banks"

http://www.hgexperts.com/article.asp?id=6787

Click on this link to read: "A Banker's Guide to Effectively Managing and Marketing Bank Owned Foreclosed Real Estate Properties"

http://www.hgexperts.com/article.asp?id=6668

Click on this link to read: "The Wacky World of Interim Management"

http://www.hgexperts.com/article.asp?id=6667

Click on this link to read: "Subprime Lending Fundamentals"

http://www.hgexperts.com/article.asp?id=6666

Click on this link to read: "Credit Card Expiration Dates and FACTA"

http://www.hgexperts.com/article.asp?id=6665

Click on this link to read: "Business Valuation Fundamentals"

http://www.hgexperts.com/article.asp?id=6656

Click on this link to read: "Managing Troubled and Failed Banks for Maximum Advantage"

http://www.hgexperts.com/article.asp?id=6655

Click on this link to read: "A Primer on Intellectual Property Valuation"

http://www.hgexperts.com/article.asp?id=6603

Click on this link to read: "The Facts on the FACTA Clarification Act"

http://www.hgexperts.com/article.asp?id=6599

Click on this link to Read: "Mortgage Banking and Mortgage Loan Servicing Industry Standard Practices and Procedures"

http://www.hgexperts.com/article.asp?id=7232

Click on this link to read: "Considerations in Defending Banking and Financial Class Action Lawsuits"

http://www.hgexperts.com/article.asp?id=7242

Click on this link to read: "Defending FDCPA and FCRA Litigation on Purchased Delinquent Debt"

http://www.hgexperts.com/article.asp?id=7438

Click on this link to read: "Defending State Attorneys General Class Action Lawsuits"

http://www.hgexperts.com/article.asp?id=7593

Click on this link to read: "Construction Lending Industry Standard Practices Applicable to Construction Lending Litigation"

http://www.hgexperts.com/article.asp?id=18115

Click on this link to read: "Inspections and Broker Price Opinion Industry Standard Practices for the Mortgage Industry"

http://www.hgexperts.com/article.asp?id=18102

Click on this link to read: "Litigation Involving Bank Trust Departments, Wealth and Investment Management Nationwide Industry Standards"

http://www.hgexperts.com/article.asp?id=7647

Click on this link to read: "Bank Security Principles and Issues"

http://www.hgexperts.com/article.asp?id=7655

How Private Equity Firms Can Profitably Invest in Troubled Banks, By Bank Management Professional Don Coker

Private Equity firms can profitably invest in banks by injecting reasonable capital, engaging experienced, professional bank management, and prudently investing the bank’s funds in loans and other investments that make economic sense.

News Bulletin: The old banking model still works, if given a chance

It is quite encouraging that I recently have received numerous calls from Private Equity (“PE”) firms and other investors wanting to buy troubled banks, and seeking either my advice on how to profitably run them, or wanting to hire me to run one for them the way that a bank should be run. In fact, considering what banking has been through in the last couple of years, it’s down right refreshing!

How is it that these people who only a short time ago were relying on alchemistic derivatives schemes and others that purport to guarantee that no one ever loses are now getting some of that old time religion? Thank God for pendulums that swing and for cycles.

Running and restructuring troubled banks is a tough business, and I have been on the front lines several times, primarily hired by the banking regulators as a consultant and “army of one” to run insolvent banks and their wholly-owned mortgage banking companies.

At this point, allow me to cite for you verbatim the entire set of instructions that I was given by a much-older-than-me governmental banking regulatory deputy commissioner immediately prior to my first assignment as a governmental banking Regulatory Supervisory Agent during the mid-1980s-mid-1990s banking meltdown. As we stood in the parking lot of the insolvent bank, he put his arm around my shoulder in a fatherly way and said, “Son, go in there and run that son of a ‘gun’ the way a bank should be run.” (Please notice that I have taken artistic license to clean up his language.)

And the funny thing was, I knew exactly what he meant! I knew how to run a bank, and he knew that I knew how to run a bank. No further instructions were needed. So I went in there and ran it the way that it should be run. After extensive organizational restructuring, financial restructuring, product realignment, staff adjustments, and many other required corrections, the result was that the bank was cleaned up to the point that it was merged into Norwest which soon became Wells Fargo. Not a bad outcome for an insolvent bank.

However, I must mention that there is another factor that has to be considered in a situation like this, and that is the old saying: “When one enters a chess game after the twelfth move, one makes the thirteenth move.”

Accordingly, you do not walk into an insolvent or troubled bank and simply sit down and start profitably banking without first dealing with some highly unusual factors. For example:

• Immediately (assuming you did not do so before accepting the job) examine all regulatory restrictions under which the bank is operating, and make sure that you are in compliance.

• Next, “Job One” is to stop the bleeding immediately. Look for and plug any expense leaks, revenue leaks, and any sources that are producing red ink. This is a major job, and not nearly as obvious and easy as you might think. You will find situations within the bank that everyone there assumes are SOP and okay, and many of them are just flat wrong. Ferreting out these problems is a good way to show the banking regulators that you have a handle on things, and that you are turning things around; and it gives them another reason to leave you alone and to go take down the next guy who is not dealing with his problems.

• Do a profitability analysis on every transactional product in the bank, such as all deposit account types, and all loan types. Dump anything that is unprofitable, even if it means reducing deposits or assets. Recognize that customers come and go and that it is stupid to take a loss on a product in order to “gain a customer” when the new customer will immediately jump ship as soon as your competitor offers him ¼% more in interest on his CD or ¼% less in interest on his loan.

• Jump into the foreclosed properties and those in more serious stages of delinquency, and take corrective actions. Make sure that energetic marketing plans are underway for all properties of all types owned by the bank.

• Determine which officers and employees can help you and which ones are working against you. Impress upon all officers and employees that your success helps the chances of the continuation of the existence of the bank, and concomitantly, their jobs. If some continue to work against you, boot them out.

• Do a periodic GL scrub where you look at every item going in and out. You will be surprised how quickly you can identify problems that are obvious to you but commonly accepted by the bank’s staff.

• Require complete breakdowns on numbers that appear in summary form on financial statements. For example, break down the “Real Estate” heading and see if there are any surplus properties. Look at the “Miscellaneous Assets” as well. (Note: Once while doing this, I discovered a hunting lodge that the staff had been hiding from me.)

• Ask questions AND GET ANSWERS. Do not accept throwaway answers, incomplete answers, or answers that dodge the question. In a troubled financial institution (or corporate) situation, you do not have the luxury of allowing your officers and employees to play games with you. You will probably have to pare down some staff anyway, so start with these non-answerers.

Here are some simple Rules that will help you avoid many of the problems that bank managers have encountered recently:

1. Don’t originate stupid loans. Use your head. Make sure you actually have an excess of collateral value over your proposed loan amount, and make sure that the borrower has the income (now) to make the loan payments.

2. Don’t originate a loan that you would not want to retain in your own portfolio. Be a gatekeeper for the financial system, and make sure that only decent quality loans enter it.

3. Don’t make loans for the wrong reasons, such as: The borrower is financially irresponsible, but he is a relative, neighbor, buddy, golf buddy, lunch buddy, club buddy, hunting buddy, fishing buddy, church buddy, been in town a hundred years, etc.

4. Don’t extend an irresponsible borrower’s loan just because he is a relative, neighbor, buddy, golf buddy, lunch buddy, club buddy, hunting buddy, fishing buddy, church buddy, been in town a hundred years, etc.

5. Don’t hire someone just because he is a relative, neighbor, buddy, golf buddy, lunch buddy, club buddy, hunting buddy, fishing buddy, church buddy, been in town a hundred years, etc.

6. Make sure that you have a healthy spread (at least 3% minimum and hopefully more) between your cost of funds and your interest rates on your loans. (Note: I once worked for a CEO that believed in paying savers 13.5% interest and lending that money out at 8.5%, and people thought he was a genius. I thought he was an idiot. Soon afterwards, he was out of banking.)

The Question of Allowing Private Equity Firms to Buy Banks

Private equity firms have very astutely recognized the potential profits to be realized from acquiring and rehabilitating troubled banks in today’s economy. Every time one of these financial system meltdowns occurs, the handwringers declare that banks are toast and will not survive to be a significant part of the economy in the future. And every time, the handwringers have been wrong. Banks are essential to our economy; and if you look around the world, you will see that every strong economy has strong banks, and every weak economy has weak banks, or virtually no banks at all. Banks in the United States of America will survive and will thrive in our soon-to-be-rejuvenated economy,

It is my opinion that PE firms can inject significant capital funds that will make a positive contribution towards resolving many of the problems in banking today. Even today, there is apparently an incredibly large pool of funds available to be tapped for investment in, among other things, the acquisition of banks. (Don’t take my word for it on the large pool of funds, just ask Bernie Madoff.)

It is also my opinion that the banking regulators are justified in having some concerns about bank owners who have no experience at managing banks. Nevertheless, it is my opinion that it is erroneous for the banking regulators to place unrealistic capital, future funding, and cross-guarantee requirements on PE firms that acquire banks. Enacting these stringent requirements will certainly scare off a potential significant source of capital funds that can be used to recapitalize troubled banking institutions. Furthermore, enacting unreasonable requirements on PE firms that purchase banks is like punishing the guy that closes the corral gate rather than the one who opened it in the first place. Certainly there is some middle-ground position that will be acceptable to the PE firms and the banking regulators.

Having been through the previous banking meltdown in the mid-1980s to mid-1990s, it is my opinion that the banking regulators should welcome the entry of PE firms into the ownership and recapitalization of banks; but the banking regulators should make sure that the decision makers and the top management of each bank are not investment bankers and financial alchemists but rather are truly knowledgeable bankers that know how to run a bank the way a bank should be run. Increased capital, from PE firms and other sources, and competent management will be major steps toward the restoration of the health of our country’s banking system.

About the Author – Banking Management Professional & Consultant Don Coker

Don Coker is a heavily experienced financial institution management professional and former high-level governmental banking regulator who was previously chosen by the banking regulators to serve as an interim manager, banking management and operational troubleshooter, nonperforming loan specialist, and in regulatory oversight positions. Based upon extensive experience and achievements in banking and lending at Citicorp and entities that are now Bank of America, JPMorgan Chase Bank, and Regions Financial, he was chosen to serve as the on-site supervisory regulatory agent interim manager for two insolvent financial institutions and two bank-owned mortgage banking institutions. Duties included the hands-on management of $1.8 billion (2009 USD) in assets including over $600 million in nonperforming loans (troubled loans and foreclosed properties), and participation in the review, restructuring, and recommendation of various recapitalization and merger plans. Mr. Coker also was called upon by the governmental banking regulators to serve in regulatory oversight positions for various insolvent institutions under the supervision of the banking regulators. In addition, Mr. Coker has been called on numerous times by the governmental banking regulators as well as the IRS to serve as their expert witness consultant in various significant banking litigation matters including one matter that exceeded $26 billion in value (2009 USD).

Mr. Coker is active in litigation consulting, serving as an expert witness consultant in over 430 cases nationwide since 1989, and has testified 106 times. He has been engaged by hundreds of law firms including 34 of the country’s top 250. In addition, he has been engaged by 8 of the country’s top 10 banks, over 60 banks worldwide including 12 of the world’s top 45 banks, and 8 of the country’s top 10 mortgage banking companies.

In addition to litigation-related work, Mr. Coker is active in performing business valuations, IP valuations, core deposit valuations, intangible asset valuations, feasibility studies, commercial real estate studies, marketing studies, business plans, anti-money laundering consulting, and advising investment funds on banking matters.

Mr. Coker’s work has involved clients in 27 countries and work covering 56 countries. He serves clients worldwide from his office in the northern metropolitan Atlanta area, and can be reached at:

Bankexpert@cs.com

(770) 852-2286.

http://expertwitness.lawinfo.com/expert/Bankexpert/

http://expertwitness.lawinfo.com/expert/Interim/

A Banker's Guide to Effectively Managing and Marketing Foreclosed Real Estate Properties

By Don Coker

When a bank’s level of non-performing loans and foreclosed assets increases to the point that the bank’s costs and expenses exceed its revenues, the resulting deficit erodes the bank’s net worth and reduces stockholders’ equity. Depending upon the particular bank’s level of net worth, a serious problem will result at some point in time unless steps are taken to mitigate the problems. This article deals with the administration of real estate properties that have already been foreclosed.

It is imperative that the lender examine and thoroughly understand both the loan documents for the particular loan and foreclosure laws in the area where the collateral property is located. Depending upon the various factors contained in loan documents and the nuances of state foreclosure laws, there are usually factors that dictate the timing of when a foreclosure must be initiated. In some cases, a lender’s failure to initiate a foreclosure at the proper time might result in the postponement of the foreclosure to a much later time, allowing further arrearages to accrue and possibly further deterioration or damage to the collateral property.

Once the foreclosure decision is made, the bank needs to automatically involve its foreclosed property department. In a commercial bank, foreclosed real estate properties are referred to as Other Real Estate Owned, or “OREO,” as distinct from real estate owned and used in the operation of the bank, such as the main bank building and bank branch properties. The equivalent term at savings banks is Real Estate Owned or “REO.”

Here are some guidelines for the successful management of foreclosed properties:

• Make sure that the homeowners’ or fire and extended casualty insurance is cancelled and that the property is added to the bank’s blanket insurance policy for foreclosed properties. (Note: I have seen properties lost to fire where there was no insurance coverage due to failure to monitor this activity.)

• Assign the responsibility for managing foreclosed properties to one person. If the level of foreclosures is sufficient to occupy one or more people fulltime, then this person almost certainly must be a new-hire. Don’t rely on the loan officers that initiated the problem loans to begin with to now miraculously solve the problems that they could not foresee in the beginning. It is advantageous to have some “distance” between the OREO/REO managers and the original borrowers.

• Secure the properties immediately after foreclosure or abandonment. Maintain a central key repository in the OREO or REO department.

• Keep the properties looking decent. Do whatever is required to avoid deterioration of the properties. No prospective purchaser wants to buy a problem property or a property that looks bad.

• If the property has problems, find a specialist in buying and fixing up properties, and provide financing to make the deal workable and attractive. Include a commitment to provide financing for the ultimate customer to whom the fix-up specialist will sell.

• Get “For Sale” signs up immediately after foreclosure. (Note: It is astonishing to me how many times I have gone into OREO and REO operations and found management amazed that a property has not sold, yet there is no “For Sale” sign on it!)

• Only list with a real estate agent if truly necessary. Your OREO or REO department will know more about the property than any real estate agent, and your financing to the purchaser will be a major selling point. You - not a real estate agent - control the financing offered.

• Talk to the neighbors of the foreclosed property. Often, their families and friends are prospective purchasers. Your offering favorable financing might be the factor that tilts the scales in favor of a relative relocating close to another relative.

• Inspect the properties regularly, and document what you find. Take any needed corrective actions immediately.

• Offer financing to entice buyers. Remember that a sale turns a cash consuming asset into a cash producing asset.

• Consider holding periods and the net present value of a probable future sale when setting a sales price. The “net” part of net present value allows for the holding costs which include taxes, insurance, any required maintenance, lawn care or landscaping, and any expenditures such as painting, carpet, and any other cosmetic expenditures that may be required in order to market the property.

• Review OREO / REO activities at meetings of the Board of Directors. Directors often have market knowledge and contacts that can help with OREO / REO problems.

Accomplishing all of these items is not as easy as it seems. It requires special expertise to initiate all of these various activities and to keep them moving toward the multiple finish lines.

About the Author

Don Coker, as a manager, consultant, and banking regulator, has successfully managed hundreds of millions of dollars of distressed and foreclosed properties of all types including single-family houses, condominiums, subdivisions and land developments, apartments, office buildings, retail shopping centers, warehouses, industrial properties, and many others nationwide. He is available on a contract basis to discuss your bank’s portfolio management needs.

Economic Damages

Mr. Coker offers opinions on compliance with nationwide industry standards for the banking, mortgage banking, lending, finance, credit card, and related industries. And in conjunction with these banking engagements, or as a separate engagement not related to banking, Mr. Coker provides consultation, affidavits, written Daubert-compliant reports, and testimony at deposition and in court nationwide for attorneys representing plaintiffs and defendants involved in economic damages and credit damages litigation.

Mr. Coker has been engaged for over 430 cases in all areas of finance, testified 106 times, and achieved 12 courthouse settlements nationwide in the fields of:

Economic damages estimates, calculations, net present value calculations, and reports
Economic damages and credit damages litigation support
Economic damages assessments for personal injury and death cases
Economic damages for personal lost wages and business lost income and lost profits
Forensic analysis of economic damages and credit damages situations
Credit damage estimates
Intellectual property damages
Patent damages
Real estate damages
Research on economic damages
Advice on economic damages issues
Class action economic damages issues
Anti-trust economic damages issues
Credit bureau issues
Proximate cause of economic damages
Forensic funds tracing and forensic accounting issues
FACTA - Fair and Accurate Credit Transactions Act - cases
Subprime lending issues
Proximate cause of economic damages and credit damages
Testimony on economic damages at deposition and in court
And other banking, finance, valuation, damages, and business related cases.

Mr. Coker is an economic damages valuation expert that is capable of producing a credible value of economic damages for any situation. Alternatively, a critique of an opposing existing economic damages report can be produced.

Background as a high-level banker and lender provides an unusually advantageous foundational viewpoint to provide a credible forensic analysis, and to help explain from a banker's and lender's point of view the proximate cause and negative economic impact of financial circumstances, such as the loss of or damage to credit, loss of income, impaired income, damage to intellectual property assets, damage to a patent, etc., and other forms of economic damages on an affected individual, corporation, or other entity.

Mr. Coker has been engaged by 34 of the top 250 law firms in the United States as well as by hundreds of smaller law firms.

Many economic damages cases involve situations that result in damage to a company. Other cases involve economic damages to an individual. In both cases, the assessment of economic damages involves a process of comparing the net present value before and after a causal damages event. The basic process is very similar for corporations and individuals. Mr. Coker is adept at both, and in 2005 was awarded a Certificate in Business Valuation from the Harvard Business School.

High-level executive experience, over 430 cases, math skills, communications skills, and strong credentials as a widely published author provide a unique set of skills that result in superb testifying techniques and the ability to produce impressive and convincing economic damages reports that are equally understandable by a judge as well as a jury.

Credibility is assured based upon prior positions held at Citicorp, Ford Motor Credit Company, and entities that are now part of Citigroup, Bank of America, Bank One / JPMorgan Chase Bank, and AmSouth Bank / Regions Financial, as well as high-level positions with a governmental banking regulatory agency.

Hired numerous times by the FDIC, Resolution Trust Corporation, Federal Home Loan Bank, IRS (7 times), Federal Savings and Loan Insurance Corporation, World Bank, and other governmental entities as their expert consultant on valuation and other banking and financial matters.

Hired by 8 of the country's top 10 banks, 8 of the country's top 10 mortgage banking companies, and 60 banks worldwide including 12 of the world's top 45 banks.

Work for both plaintiffs and defendants.

Listed in the recommended consultant databases of both the American Association for Justice (f/k/a/ ATLA) and the Defense Research Institute (DRI).

A high level of professionalism and efficient management skills allow for a quick turnaround on short-fused work assignments without compromising quality.

Travel is not a problem, and consulting assignments have been completed for clients in 45 states and 27 foreign countries in the Americas, Europe, Asia, and Africa.

Professional appearance and personable demeanor as well as personal communications skills needed to relate to a jury. Listed in Who's Who in America and Who's Who in the World.

Mr. Coker serves clients worldwide from his office in the northern metro Atlanta, Georgia, area, and can be reached by telephone at (770) 852-2286 or by e-mail at: Bankexpert@cs.com

Visit: http://www.hg.org/article.asp?id=7232

Additional Questions or need further information?

Don Coker

423 Latimer Street

Woodstock, GA 30188-5052

Phone: 770-852-2286

Fax: 509-678-7756

Additional Faxes: (610) 643-7870 or (419) 517-5284

Entire Website Copyright 2002 - 2008 by Don Coker

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