Lary Stromfeld has represented leading financial institutions and other participants in the global capital markets for more than 30 years. His versatile practice and strong technical skills have earned him rankings as a top attorney in two distinct areas: derivatives and municipal bankruptcies. In January 2016, Risk
magazine recognized Cadwalader as “Law Firm of the Year” on the basis of three projects, all of which are co-led by Lary:
•developing an industry-wide solution to the Volcker Rule for municipal tender option programs,
•representing ISDA in the development of documentation to comply with margin requirements under Dodd-Frank, and
•representing a creditor with a multi-billion dollar exposure to Puerto Rico and its public agencies.
Lary has a reputation for giving practical advice in transactions and advisory matters involving a wide variety of financial products and complex financings. According to Chambers USA, Lary is one of the best from a strategy perspective, ? extremely logical and very good at cutting through the surface material to get to the heart of any matter, ? has a true gift... which allows him to stay calm and unrattled, ? and he never says 'no, '? but rather suggests how to get around limitations and exploit opportunities ? (Chambers USA). He is recommended for his advice on the full range of structured products and derivatives matters, including bankruptcies, close-outs and disputes ? (Chambers USA). He has been called an expert of the highest caliber ? with a derivatives practice that is truly versatile, spanning advisory and transactional matters ? (Chambers Global). He is also the co-head of Cadwalader's Distressed Municipal Finance Practice and the founder and head of Cadwalader's historically famed... leading Municipal Derivatives practice ? (Chambers USA).
Lary's recognitions include:
•Chambers Global - The World's Leading Lawyers: Band 1 in global rankings of derivatives specialists.
•Chambers USA -America's Leading Lawyers: Band 1 in U.S. national rankings of derivatives specialists.
•US Legal 500: a “Leading Lawyer” in Municipal Bankruptcy with deep municipal finance experience and part of a derivatives team that is “incredibly thoughtful and knowledgeable; if there is a solution, they will find it.”
•The Best Lawyers in America: a leading lawyer in Derivatives and Futures, Securitization and Structured Finance, where clients praised his strong technical skills and noted that he is extremely practical in his advice.
•Euromoney Guide to the World's Leading Securitization Lawyers: Capital Markets/Derivatives specialist.”
•Super Lawyers (New York): listed in the inaugural and each subsequent edition.
•IFLR 1000: “a leading lawyer.”
Lary is the co-author of Chapter 9 Bankruptcy Strategies: A Big Stick, Rarely Used, published in Inside the Minds by Aspatore Books and Lehman Brothers Bankruptcy Filings: Issues for Replacement Swap Counterparties and their Municipal Clients published in Pratt's Journal of Bankruptcy Law. Lary is a frequent lecturer at industry conferences.
Bankruptcies and Disputes:
•Advising a monoline insurer in connection with the potential restructuring of several billion dollars of debt issued by the Commonwealth of Puerto Rico and its public agencies.
•Advising a swap dealer in connection with the potential termination and restructuring of in-the-money swaps with the City of Detroit, which added a pledge of casino revenues. The restructuring was awarded the 2009 Alternative Transaction Deal of the Year by The Bond Buyer.
•Advising a swap dealer in connection with the appointment of an emergency manager and bankruptcy filing of the City of Detroit.
•Serving as primary outside counsel to a leading financial institution in connection with the failure of Lehman Brothers and of numerous hedge funds resulting from the 2008 credit crisis. Cadwalader was awarded Law Firm of the Year in 2012 by the International Financial Law Review for this representation.
•Representing a dealer/creditor in the historic equity infusion for the Long-Term Capital Management hedge fund family.
•Representing a dealer/creditor group in connection with a hedge fund failure following the Russian debt crisis.
•Advising various financial institutions in the bankruptcy of Orange County, California.
•Advising Detroit Public Schools in connection with the initial preparation for a Chapter 9 filing and pre-petition financing.
•Restructuring several municipal interest rate swaps in connection with the settlement of a claim that the transactions were invalid.
•Representing a state financing agency in the mediation and settlement of its claims against and by the Lehman Brothers estate.
•Representing the International Swaps and Derivatives Association in the development of a series of industry-wide protocols and amendments to its standard documentation to comply with regulations under the Dodd-Frank Act. Cadwalader was awarded Law Firm of the Year in 2012 and 2013 by Derivatives Week/Derivatives Intelligence, which cited its representation of ISDA.
•Serving as one of the primary architects of the protocol structure and ISDA Amend platform used by over 35, 000 derivatives market participants worldwide to comply with Dodd-Frank regulations. The design won the Back Office Technology Service of the Year Award from Risk Magazine.
•Advising several global financial institutions on the development of internal compliance policies and procedures relating to their derivatives businesses to comply with regulations under the Dodd-Frank Act.
•Participating in the special counsel investigation of the derivatives marketing and trading activities of Bankers Trust Company.
•Heading the ISDA committee that developed the documentation for Credit Default Swaps on U.S. state and local governments.
•Representing the sponsor and dealer group that developed MCDX, the index for Credit Default Swaps on U.S. state and local governments.
•Serving as counsel to the Municipal Financial Products Committee of SIFMA, in which capacity he advised it on guiding principles for dealers in the municipal swaps market and other projects.
•Serving as counsel to the International Swaps and Derivatives Association (ISDA) on an amicus brief filed in the Second Circuit Court of Appeals, which cited the brief in reversing the lower court's interpretation of ISDA's credit derivatives documentation.
•Representing the Association of Financial Guaranty Insurers (the monoline trade association), SIFMA, and ISDA in other amicus briefs for various cases raising issues of concern to their respective markets.
•Designed the structure for compliance with the Volcker Rule that forms the basis for industry-standard documents for municipal tender option bond programs.
•Developed a new structure to provide secondary market funding of a $275 million bridge loan to the City of Detroit as part of its exit from Chapter 9 bankruptcy.
•Developing a widely-used program for regional dealers to pass-through the credit and market risk of municipal swaps to larger, higher-rated banks.
•Representing the swap dealers in structuring, negotiating and documenting a series of derivative transactions aggregating over $107 billion to hedge the interest rate, prepayment and credit risks of financing the privatization of Chrysler LLC.
•Developing the program documentation for the first all-electronic credit derivatives trading platform.
•Representing the advisor to the Commonwealth of Pennsylvania in connection with the interest rate risks of selling a long-term concession on the Pennsylvania Turnpike.
•Representing a lender in the $375 million syndicated bridge loan to Louisiana Citizens Property Insurance Corporation as it struggled to pay post-Hurricane Katrina claims.
•Representing several financial institutions in a $1 billion bridge loan and subsequent permanent financing to the State of California during its energy crisis.
• Cadwalader Drafts ISDA Document to Assist Derivatives Market Participants
Apr 20, 2016
• Cadwalader Continues to Dominate Law-Firm Ranking
Jul 25, 2014
• Cadwalader Named Law Firm of the Year by Risk Magazine
Jan 28, 2016
Clients & Friends Memos
• CFTC / CME Settle Misappropriation Case
Dec 03, 2015
• Chapter 9 Bankruptcy Strategies: A Big Stick, Rarely Used
Oct 31, 2011
• Distressed Municipality Spotlight: Detroit
Jan 10, 2013
SEC Enforcement Advisor
• SEC Launches Municipalities Continuing Disclosure Cooperation Initiative
Mar 27, 2014