Karen L. Grandstrand

Shareholder

Email: kgrandstrand@fredlaw.com
Office: 612.492.7153
Assistant: Sue Knoll, 612.492.7579

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PRIMARY SERVICES

Bank & Finance Mergers & Acquisitions Corporate Governance Securities

ADDITIONAL EXPERTISE

Banking & Financial Services Litigation Internet, Technology & E-Commerce

Overview

Karen is a nationally recognized financial services regulatory attorney, financial industry advisor and dealmaker.

She advises clients on examination matters, compliance and enforcement actions, mergers and acquisitions, the recapitalization and acquisition of troubled banks, private equity and other investments in banking organizations, corporate governance, risk management, and payment system and trust matters.

Prior to joining Fredrikson, she had a 14-year career with the Federal Reserve Bank of Minneapolis where she was initially in the Law Department and ultimately the Senior Vice President of the Banking Supervision and Risk Management Departments. In this position, she was the senior officer in charge of safety and soundness, consumer, CRA, trust, and IT examinations, as well as applications involving banks and holding companies.

Learn More About Bank & Finance:

What are some compliance hot topics for bank boards?

What do sellers need to know when they are preparing to sell their bank? Are there steps they should take to prepare for a sale?

What is a bank merger of equals and what are the social and related issues that should be considered?

What types of regulatory issues should one pay particular attention to in any M&A transaction?

Articles & Presentations

The Current State of De Novo Bank Charters

September 4, 2018

By Karen L. Grandstrand

The number of FDIC-insured institutions in the U.S. was at 5,670 as of March 30, 2018, down from 8,534 as of December 31, 2007. Over the past five years, 1,292 institutions have been absorbed by mergers and 63 have failed. Another factor behind the reduced number of institutions, however, is the small number of de novo banks.

Sea Change in Banking

March 1, 2018

By Karen L. Grandstrand

Karen Grandstrand has been part of the banking industry since 1982, seeing it from the vantage point of regulator, attorney and director.

Capital Planning and Heightened Expectations – SR 09-4

December 2, 2015

By Karen L. Grandstrand

During the financial crisis, many banking organizations became subject to enforcement actions that required banks and bank holding companies (BHCs) to obtain approval from their regulators to pay dividends and redeem stock. At the same time, the Federal Reserve issued Supervision and Regulation Letter SR 09-4 (February 24, 2009, as revised March 27, 2009). This SR letter places ongoing restrictions on the payment of BHC dividends and the redemption of BHC stock even after enforcement actions are lifted.

Presenter, “Evolving Challenges and Competition for Small Business Banking,” Barlow Research’s 1st Friday Web Conference, December 7, 2018
Presenter, “What Banks Need to Know About the M&A Market,” 38th Annual Eide Bailly Bankers Seminar, Mankato, MN, November 1, 2018
“The Trends, Conditions and Issues Driving Bank M&A,” BankBeat, September 7, 2018
Presenter, “The M&A Landscape: Today's Trends, Conditions, Issues,” Bank Holding Company Association (BHCA) Fall Seminar, October 1, 2018
Presenter, “An Overview of Regulatory Changes & Consolidation Trends in the Banking Industry,” Risk Management Association – Minnesota Chapter Luncheon/Meeting, May 16, 2018
Featured in "Amazing Outside Directors,” NW Financial Review, March 2018
Co-Presenter, “Bank M&A and the Regulatory Process,” Bank Holding Company Association (BHCA) Fall Seminar, October 2, 2017
Co-Chair, “2017 Banking Law Institute,” MSBA Banking Law Committee and MN CLE, April 2017
Moderator, “A Conversation with Neel Kashkari,” 2017 Banking Law Institute, March 2017
Quoted in “Still Eager to Serve,” NorthWestern Financial Review, March 2017
“2016 Compliance Developments and Projections for 2017,” NorthWestern Financial Review, December 2016
Presenter, “Board Governance – Emerging New Legal and Regulatory Expectations for Bank Directors,” Hot Topics, co-sponsored by the Center for Law & Business at Mitchell Hamline School of Law and the Banking Law Committee of the Minnesota State Bar Association, October 2016
Quoted in “Regulators are Using Guidance to Regulate Boards and Consumer Compliance,” Bank Owner, Bank Holding Company Association, Summer 2016
Presenter, “Regulatory Hotbuttons – From the Boardroom to the Teller Line,” Bank Holding Company Association Spring Seminar, May 3, 2016
Moderator, “Mergers & Acquisitions Activity in Financial Institutions,” 2016 Banking Law Institute, April 2016
Co-Chair, “2016 Banking Law Institute,” MSBA Banking Law Committee and MN CLE, April 2016
Presenter, “Compliance Issues the Board Can’t Ignore,” Bank Holding Company Association Webinar, November 19, 2015
Moderator, “Regulatory Panel,” Eide Bailly 35th Annual Bankers Seminar, October 29, 2015
Quoted, “Relieving Compliance Clampdown,” NW Financial Review, October 2015
Planning Committee, 2015 MN State Bar Association Business Law Institute, May 2015
Co-Chair, “2015 Banking Law Institute,” MSBA Banking Law Committee and MN CLE, April 2015
Panelist, “Emerging New Legal and Regulatory Expectations for Bank Directors,” 2015 Banking Law Institute, April 2015
Co-Presenter, “Documenting the M&A Deal,” Fredrikson & Byron’s Bank and Finance Seminar: Key Developments that Every Banker Should Know, August 20, 2014
Presenter, “Legal Considerations for Bank Mergers & Acquisitions,” Bank Holding Company Association Webinar, May 22, 2014
Presenter, “Current Exam Trends and a Regulatory Update,” Bank Holding Company Association Spring Seminar, May 6, 2014
Presenter, “Doing Business With Your Bank: The New Beneficial Ownership Rules,” The 2014 Minnesota State Bar Association Business Law Institute, May 5, 2014
Co-Chair, “2014 Banking Law Institute,” MSBA Banking Law Committee and MN CLE, April 2014
Presenter, “Current Exam Trends and a Regulatory Update,” Bank & Finance Seminar: Key Developments that Every Banker Should Know, September 12, 2013
Presenter, “Considerations for Managing the OREO on Your Books,” Bank Holding Company Association Webinar, June 13, 2013
Co-Chair, “2013 Banking Law Institute,” MSBA Banking Law Committee and MN CLE, April 8, 2013
Panelist, “Bank Mergers and Acquisitions – Analyzing the Current Landscape,” Wells Fargo Conference, Charlotte, NC, May 1, 2013
Quoted, “Stress tested: How U.S. Bank and Wells Fargo performed in the Fed’s simulated economic nightmare,” Twin Cities Business Journal, March 19, 2013
Testify, “Amendments to MN UCC Article 4A Necessitated by Dodd-Frank Remittance Transfer Rule,” Minnesota State Legislature, February 14, 2013
“M&A Transactions – The Next Phase,” FredNEWS: Bank & Finance, March, 2013
“Regulating or Managing? The Line is Growing Thin,” American Banker, March, 2013
Speaker, “The Art of the Deal – It’s Alive & Well”, 32^nd Annual Eide Bailly Bankers Seminar, Mankato, MN, November 1, 2012
Moderator, “Regulatory Panel”, 32^nd Annual Eide Bailly Bankers Seminar, Mankato, MN, November 1, 2012
Panelist, “The State of the Financial Services Industry: A Compliance and Legal Update”, Wipfli’s 2012 The Community Bankers Forum, MN, October 25, 2012
“The State of Banking,” FredNEWS: Bank & Finance, June 2012
Moderator, Regulator Panel, Minnesota Bankers Association President & Senior Management Conference, Alexandria, MN, June 19, 2012
Presenter, “Parallel Planning is Essential for your Family Bank’s Structure,” Independent Community Bankers of Minnesota, June 5, 2012
Planning Committee, 2012 MN State Bar Association Business Law Institute, May, 2012
Co-Chair, 2012 MN State Bar Association Annual Banking Law Institute, April 16, 2012
Panelist, “‘Hot Topics!’ Learn the Basics about Banking from Three Experienced Women Practitioners,” Minnesota Women Lawyers Professional Enrichment Committee, 2012
“Making the Most of Your Bank Holding Company,” Bank Holding Company Association Legal Live Webinar, February 9, 2012
Moderator, “Regulatory Issues: A Moderated Discussion with the FDIC, OCC, and the Federal Reserve,” Minnesota Bankers Association, November 8, 2011
Presenter, “Key Developments that Every Banker Should Know,” Fredrikson & Byron Bank & Finance Seminar, September 22, 2011
Speaker, “Enterprise Risk Management for Boards,” National Association of Corporate Directors, May 18, 2011
Speaker, “Dodd-Frank Wall Street Reform & Consumer Protection Act and Banking Trends and Challenges,” Risk Management Association, May 18, 2011
Speaker, “Hottest Topics in Banking,” Bank Holding Company Association, May 3, 2011
Speaker, “Protecting Bank Capital: Enforcement Action Avoidance or Compliance,” University of Wisconsin Graduate School of Banking, February 8, 2011
“The Dodd-Frank Act: A Look at the Immediate Impacts,” co-authored with Karla Reyerson, FredALERT: Bank & Finance, August 26, 2010
Speaker, “Regulatory Issues: A Moderated Discussion with State of Minnesota, Federal Reserve, FDIC and OCC,” Minnesota Bankers Association, Duluth, MN, August 2010
Speaker, World Services Group 8^th Annual Meeting, Costa Rica, November 12-13, 2009
“The Future of Supervision and Regulation,” FredNEWS: Bank & Finance, September, 2009
“Recent Developments in Government Banking Programs,” co-authored with Karla Reyerson, FredALERT: Bank & Finance, May 29, 2009
Moderator, “Regulatory Issues: A Moderated Discussion with the FDIC, OCC and the Federal Reserve,” February 9, 2009
“Treasury Publishes Capital Purchase Program Term Sheet for S Corporations,” co-authored with Karla Reyerson, FredALERT: Bank & Finance, January 16, 2009
“Final Rule for FDIC’s Temporary Liquidity Guarantee Program: Important Changes,” co-authored with Karla Reyerson, FredNEWS: Bank & Finance, November 26, 2008
“Financial Institutions Consider Participation in the Temporary Liquidity Guarantee Program,” co-authored with Karla Reyerson, FredNEWS: Bank & Finance, November 21, 2008
“Financial Institutions Weigh Benefits and Costs of Participating in the Capital Purchase Program,” co-authored with Karla Reyerson, FredNEWS: Bank & Finance, November 21, 2008
“Regulatory Panel and Legal Update” and “Bank Acquisitions in Today’s Economy,” Eide Bailly’s 28^th Annual Bankers Seminar, October 14, October 30, November 6, 2008
“Update of Measures Taken to Create Financial Stability,” co-authored with Karla Reyerson, FredNEWS: Bank & Finance, October 13, 2008
“President Bush Signs the Emergency Economic Stabilization Act of 2008,” co-authored with Karla Reyerson, FredNEWS: Bank & Finance, October 3, 2008
“Banking & Finance Q&A - The industry as a whole is ‘sound and stable and undervalued,’” Minneapolis/St. Paul Business Journal, August 29, 2008
Speaker, “Communicating with Regulators in a Challenging Lending Environment,” RMA Minnesota Associates Annual Meeting, Minneapolis, June 25, 2008
“Ramifications of a Less Than Satisfactory Examination,” FredNEWS: Bank & Finance, June 2008
“A Focus on Mergers and Acquisitions,” Inside the Minds™, Winning Legal Strategies for Banking Law, Aspatore Books, 2005

Honors & Education

EDUCATION

Loyola University of Chicago School of Law, J.D., 1982
Concordia College, B.A., Moorhead, MN, 1977, summa cum laude

BAR ADMISSIONS

Illinois, 1982
Minnesota, 1984
U.S. District Court for the Northern District of Illinois, 1982
Trial Bar, U.S. District Court for the Northern District of Illinois, 1984
U.S. District Court for the District of Minnesota, 1986

HONORS

Amazing Outside Director Award, NW Financial Review, 2018
Outstanding Director Award, Twin Cities Business Magazine, 2016
Recognized as a Top Rated Business Attorney by American Lawyer Media and Martindale Hubbell, 2016
Best Lawyers’ “Lawyer of the Year” in Minneapolis Financial Services Regulation Law, 2012, 2017 and 2019
Best Lawyers’ “Lawyer of the Year” in Minneapolis Banking and Finance Law, 2016
The Best Lawyers in America, Banking and Finance Law, 2006-present
The Best Lawyers in America, Financial Services Regulation Law, 2011-present
Minnesota Super Lawyers, 2011-present
MNCREW annual Spotlight on Success honoree, September, 2012
Finance and Commerce, Top Women in Finance Circle of Excellence, 2011
Minneapolis/St. Paul Business Journal, 25 Industry Leaders List, 2007
Concordia College Regent’s Award, 2000

Professional Activities

PROFESSIONAL ACTIVITIES

Co-Chair, Banking Law Committee, MN State Bar Association
Planning Committee, Business Law Institute, MN State Bar Association
Past Chair, Business Law Section Executive Council, MN State Bar Association
Member, American Bar Association, MN State Bar Association, and Hennepin County Bar Association
Advisory Board Member, Center for Law and Business, Mitchell Hamline School of Law, 2016-present
Advisory Board Member, Business Law Institute at Hamline University School of Law, 2011-2015
Director, TCF Financial Corporation, 2010-present
Director, Thrivent Financial Bank, 2006-2010
Member, Minnesota Women’s Economic Roundtable, 2000-present, President and Director, 2005-2008
Member, MN Women Corporate Directors, 2010-present
Member, National Association of Corporate Directors, 2015-present
Director and Past Chair, Twin Cities Neighborhood Housing Services, Inc., 1993-2001
Faculty Member, MN Institute of Legal Education and MN CLE
Speaker, University of Wisconsin Graduate School of Banking
Speaker, Professional Trade Association Conferences and Seminars
Guest Lecturer, University of Minnesota, St. Thomas University, and Hamline University
Legal Writing Instructor, University of Minnesota Law School
Senior Vice President, Banking Supervision and Risk Management, Equal Employment Opportunity Officer, Federal Reserve Bank of Minneapolis, 1985-1999
Frankel and McKay Ltd., Chicago, Trial Attorney, 1983-1985

COMMUNITY

Director, Concordia College Board of Regents, 2011-present
Director and Past Chair, Minnesota Youth Symphonies, 2003-2009
Director, Augsburg College Suzuki Talent Education Foundation, 2004-2005
Mentor, Concordia College, 2011-present