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Finance Companies

The recent financial crisis – and the resulting regulatory and legislative responses – have placed new pressures on finance companies. Changes to the cost and stability of funds have challenged old business models and led some to reassess their corporate structure and strategic direction. Many finance companies also face intensified federal and state regulation – whether directly or through relationships with bank partners or affiliates.

Promontory helps finance companies of all types navigate the new regulatory and strategic requirements. Our engagements have encompassed a broad range of business models and asset classes, including residential mortgage, auto, education, unsecured consumer, commercial real estate, asset-based lending, leasing, SBA, leveraged lending, and other forms of specialty finance.

Our work in this sector includes engagements involving:

Compliance
Risk management
Regulatory examinations and enforcement actions
Strategic plans and corporate structure
Bank/non-bank relationships

Representative Engagements

A leading consumer finance company engaged Promontory to help respond to increasing regulatory scrutiny of its compliance program. Promontory’s multidisciplinary team conducted a comprehensive assessment of the company’s compliance program against regulatory expectations and best practices. We then assisted the company in implementing our recommendations to the satisfaction of its regulators.
A large diversified finance company engaged Promontory to assist in the restructuring of its specialty commercial finance business, including the transfer of several business lines to an affiliated bank. Our professionals worked with the company to develop a business plan, policies and procedures, and an implementation program that balanced regulatory expectations with the company’s strategic goals.
An innovative finance company engaged Promontory to help respond to regulatory and economic pressures on its strategic operating model. Promontory helped the company resolve an imminent regulatory threat to its short-term business continuity. We then worked with management to evaluate the risks, benefits, and future viability of available charters and licensing regimes, and to execute the alternative strategy that management selected.

Finance Companies

Representative Engagements

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