BE SPECIFIC: Banking attorney Mercedes Tunstall is advising clients against taking the "kitchen-sink" approach with contracts and instead spell out exactly what the agreement entails so as to not raise any unnecessary red flags with regulators.

Tighter Focus on Contracts Could Kill Some Vendor Relationships

Regulators are now demanding every last detail to be put in writing; the upshot is that banks may be forced to cut ties with vendors that can't meet all requirements. Still, experts say more ironclad language is ultimately good for banks because it gives them protections they haven't always had.

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