Mayer Brown Eyes Role as ‘Champion’ for Big Banks in Washington

Mayer Brown is looking to position itself as a leading advocate for banks and other finance players fighting new regulations in Washington.

The Chicago-headquartered firm’s clients include JP Morgan, Wells Fargo, and Citibank. They’re part of a larger group increasingly voicing concerns that traditional lenders have to play by different rules than less-regulated competitors from fintech and private credit.

“There’s a lot of focus right now on if there is a level-playing field for banks with all the non-bank participants in the market,” Mayer Brown chair Jon Van Gorp said in an interview.

The firm’s lawyers are at the center of a lobbying campaign against a proposed rule that could force large lenders to carry more capital. Mayer Brown advised several industry trade groups—such as the Structured Finance Association and the CRE Finance Council—that filed comments opposing the move.

Jon Van Gorp

Photo: Mayer Brown

Anticipating more policy showdowns, the firm is adding to its regulatory bench. It announced Monday the hire of Jennifer Zepralka, a former Securities and Exchange Commission official.

Zepralka, who was involved in a slate of SEC rulemakings, will be a partner in Washington. She served as the chief of the SEC’s Office of Small Business Policy since 2018.

Her arrival comes after Mayer Brown in January added Kimberly Hamm, former House Speaker Kevin McCarthy’s (R-Calif.) chief counsel, to serve as its congressional investigations chair.

The firm sees itself as a “champion for the industry and making sure there’s common-sense rules for bank regulation,” Van Gorp said. The advocacy work, he added, “sells well to clients.”

“That’s what they’re looking for, not just the ability to get the work done,” he said.

‘A lot of Competition’

Zepralka’s addition comes as several corporate law firms jockey for more work in Washington by bringing in former government officials.

Zepralka said she expects to work with public companies on their disclosure obligations, as well as smaller companies considering tapping the IPO market, which she noted is “coming back.”

Jennifer Zepralka

Photo: Courtesy of Mayer Brown

She joins a Mayer Brown office that includes Andrew Olmem, the former Deputy Director of the National Economic Council during the Trump administration who has taken a lead on some of its bank regulatory work.

Major law firms are seeing demand grow in Washington as lawmakers on both sides of the aisle turn their focus to corporate investigations. The Biden administration’s regulatory emphasis on financial services and antitrust has also boosted legal work.

Cooley LLP in February added Susanne Grooms, a former senior counsel on the House Oversight and Reform Committee, to launch its congressional investigations practice. Established players in Washington, such as Covington & Burling and WilmerHale, continue to have a leg up in representing corporate clients interacting with Congress.

“There’s a lot of competition in that area,” said Van Gorp. “But we have a big existing client base and we represent a lot of clients around the world. We see this as an area where we can attract new clients.”

Basel III Endgame

Mayer Brown’s work for banks opposing the proposed capital requirements is part of a broader push back by Wall Street.

The firm said it worked with groups, including the London Stock Exchange Group and the National Association of Manufacturers, to make the case against the so-called “Basel III Endgame” rules.

The July proposal from the Federal Reserve Board, Federal Deposit Insurance Corp., and the Office of the Comptroller of Currency would lift capital requirements for the largest banks by nearly 20%.

Supporters say the move would help shore up the banking system following some regional banks’ failures last year. Lenders argue the change is unnecessary and will hurt consumers.

Mayer Brown’s Olmem testified in his personal capacity at a September House hearing on the proposed rule. He warned the proposal is susceptible to legal challenge.

Mayer Brown has also worked with the Securities Industry and Financial Markets Association on public comments opposing SEC rules targeting areas such as private funds.

Separately, a band of hedge fund trade associations last month retained Gibson Dunn & Crutcher to sue the SEC over a new regulation that will require some firms to register as dealers in the US Treasuries market. The Chamber of Commerce also retained Gibson Dunn in its lawsuit fighting new climate reporting rules introduced by the SEC.

State of Asia Play

Mayer Brown finished 2023 with more than 1,800 lawyers and revenue topping $1.9 billion, marking a slight year-over-year increase, according to data from The American Lawyer.

Its moves in Washington come as the firm reportedly struggles in the greater China region. The firm laid off an undisclosed number of attorneys in its corporate, funds, and capital markets practices in Hong Kong amid a slump in the deals market there, according to a March Wall Street Journal report.

Van Gorp said the investments in Washington are not tied to any pullback elsewhere. He did not respond to questions on the firm’s Hong Kong office, which has more than 150 attorneys, according to its website.