On September 25, the Berkeley Center for Law, Business, and the Economy (BCLBE) and Berkeley Business Law Journal (BBLJ) co-sponsored the talk: “Change in Financial Services Regulation? You Can Bank on it!” Featuring two prominent legal practitioners with a combined 70 years in the field, the discussion revealed the challenges and rewards of navigating the complex world of financial regulation. Sara Kelsey and Karol Sparks gave valuable advice and told their life stories.
Sara Kelsey described her unorthodox and impressive journey through the fast-evolving world of financial regulation. Dubbed the “Forrest Gump” of the banking bar, she evolved from a teargas-dodging Berkeley undergraduate into the General Counsel of the Federal Deposit Insurance Corporation (FDIC). Kelsey’s accomplishments illustrate the power of her motto: “always read the statute with fresh eyes – don’t listen to anyone else.”
Kelsey boldly advocated for the approval of one of the largest mergers in history while at Skadden Arps in the 1990’s, forming Citigroup from Travelers Group and Citicorp. While nearly everyone thought the merger was illegal and insane, Kelsey’s precise understanding of the Glass-Steagall Act and the Bank Holding Company Act gave her confidence that Citigroup would have a 2-5 year window for divestment of its prohibitive assets. In addition, the national political environment suggested imminent legislation that would cause major regulatory change. The gamble paid off in 1999 with the passage of the Gramm-Leach-Bliley Act, removing barriers between banking, securities, and insurance companies.
Fellow speaker Karol Sparks, a partner at Barack Ferrazzano, attributed the direction of her career to the influence of what she calls “drivers.” At her first firm, she was assigned to the banking practice, despite being self-described as “clueless” to the point of believing that her deposited money was physically “in the bank.” In addition to an “employer’s desire,” the “demands of clients” was another major career driver. Working from home in California, she learned over fifty state insurance codes in four areas to meet clients’ needs, waking up one day as “the expert” in the country on banks involved with insurance. Other important drivers have been “family” and “passion,” which includes teaching. Her book, The Keys to Banking Law: a Handbook for Lawyers, is available on Amazon.
Sparks and Kelsey have both practiced banking law as it developed and offered varied advice for prospective banking law practitioners. Particularly, be aware of the constantly changing nature of banking, stay educated, stay current, know where to look, and know the people (often, the regulators). They teach a traveling course on Banking Law Fundamentals along with a few other practitioners. At Berkeley Law School, this class was sponsored by BCLBE and held at Berkeley’s International House from September 23-25.