MoFo expands New York derivatives practice

James Schwartz, Brad Berman, and Larry Abrams come to the Derivatives & Structured Products group as of counsel from various in-house roles. Prior to this move, Schwartz was a vice president and counsel at AIG Financial Products, Berman was a special counsel in the General Practice Group at Sullivan & Cromwell, and Abrams was a senior vice president and senior counsel at The Royal Bank of Scotland.

In their new role, the three lawyers will advise clients on how to adapt and respond to a fast-evolving regulatory climate, with the Dodd-Frank Act poised to take effect on July 21.

“You can’t overstate how much Dodd-Frank will affect derivatives transactions. It’s an attempt to put a number of transactions on exchanges, and there will be additional collateral rules that apply to many counterparties. What they’re trying to do is treat derivatives like futures. Part of the intention of Dodd-Frank is to regulate this market and perhaps winnow it down,” Schwartz said.

Berman described Morrison & Foerster as one of a handful of financial law firms with a robust practice in the area of structured products. “Many of the products I work with are commodity-linked, and my clients want to continue to be sure that they cover their hedges properly,” Berman said.

Abrams described the international nature of the business for which he and his new colleagues will provide counsel, and also emphasized that the ramifications of Dodd-Frank include cost-benefit considerations along with legal issues.

“How will the new rules affect international compliance, other jurisdictions? Clearly our clients will have to determine what it will cost them to continue to do business as they’ve grown accustomed to. Having spent 20 years-plus in house, at derivatives shops and investment banks, I can interpret the rules and offer information that would provide clients with the ability to make reasoned business decisions,” Abrams said.