News & Analysis as of

Receivership Federal Deposit Insurance Corporation Banking Sector

Kilpatrick

First Republic Executives Fail in Attempt to Recover Nonqualified Deferred Compensation Plan Assets

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A federal court has rejected an attempt by former First Republic Bank employees to recover assets held in a rabbi trust that funded deferred compensation benefits. In Harrington v. Federal Deposit Insurance Corporation, the...more

Orrick, Herrington & Sutcliffe LLP

FDIC closes Philadelphia-based bank and receives it for another bank

On April 26, the FDIC announced that the Pennsylvania Department of Banking and Securities had closed a Philadelphia-based bank and appointed the FDIC as receiver, noting that this is the first bank to “fail” this year and...more

Kilpatrick

Regulators Offer Candid Assessment of the Root Causes for SVB and Signature Failures

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A toxic combination of poor risk management and poor regulatory supervision proved fatal for Silicon Valley Bank (“SVB”) and Signature Bank (“Signature”), according to a series of reports released on April 28, 2023 by federal...more

Locke Lord LLP

Protecting High Value Bank Accounts – ‎Options to Increase FDIC Insurance Limits and Trust ‎Solutions

Locke Lord LLP on

The recent collapses of Silicon Valley Bank (“SVB”) and Signature Bank—followed by the bailout of Credit Suisse—have led depositors to look for ways to protect their deposits in excess of the Federal Deposit Insurance...more

Seyfarth Shaw LLP

A Look Under the Hood of Signature Bridge Bank, N.A. Sale to New York Community Bancorp’s Flagstar Bank, N.A.

Seyfarth Shaw LLP on

On March 12, 2023, Signature Bank, New York, NY (SB) was closed by the New York State Department of Financial Services, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. “[T]he FDIC transferred all...more

Faegre Drinker Biddle & Reath LLP

FDIC Finds Buyer for Silicon Valley Bank

Silicon Valley Bank (SVB) - SVB failed on Friday, March 10; and on Monday, March 13, the Federal Deposit Insurance Corporation (FDIC) transferred all deposits — both insured and uninsured — and substantially all of SVB’s...more

Seyfarth Shaw LLP

Silicon Valley Bank and Signature Bank

Seyfarth Shaw LLP on

The FDIC has statutory obligations to maximize the net present value return from the sale or disposition of the assets entrusted to it as receiver, and to minimize the amount of any loss realized.[1] Today we examine the...more

Quarles & Brady LLP

Reflections on the Ongoing Challenges for Banks and Bank Clients in the Wake of SVB's Failure

Quarles & Brady LLP on

Banks and all those who do business with banks --essentially all of us-- have been shaken over events that have occurred over the last couple of weeks, certainly since the Government announcement that Silicon Valley Bank...more

Seyfarth Shaw LLP

Silicon Valley Bank Auction and Signature Bank Sale

Seyfarth Shaw LLP on

Bank Asset Auction: Bids for Silicon Valley Bridge Bank, N.A. (“SVB”) and its subsidiary Silicon Valley Private Bank, together or separately, in whole or in part, are due by Wednesday, March 22, 2023 at 8 p.m. and Friday,...more

Faegre Drinker Biddle & Reath LLP

Silicon Valley Bank and Signature Bank Failures

Silicon Valley Bank (SVB) - SVB failed on Friday, March 10; and on Monday, March 13, the Federal Deposit Insurance Corporation (FDIC) transferred all deposits — both insured and uninsured — and substantially all of SVB’s...more

Jones Day

The Silicon Valley Bank Failure: Cash Management and Risk Oversight

Jones Day on

In Short - The Background: The recent failure of Silicon Valley Bank, the second-largest bank failure in U.S. history, temporarily paralyzed start-ups, public companies, venture firms, private equity firms, and portfolio...more

Perkins Coie

Distressed Bank Update as of March 16, 2023

Perkins Coie on

In the three days since federal authorities announced sweeping measures to protect depositors of Silicon Valley Bank (SVB) and Signature Bank and help prevent additional bank failures (as discussed in our update of March 12,...more

Goodwin

Turbulent Banking Sector Renews Interest in Cash Management and Investment Policies

Goodwin on

Silicon Valley Bank was a leading bank for the tech and life science sectors and for many of the venture capitalists who invest in those sectors. The bank’s abrupt disclosure on Wednesday, March 8, of significant losses on...more

Davis Wright Tremaine LLP

Navigating the SVB Receivership

Is my money safe? It's a question that we haven't heard very much in over twelve years. Most businesses and people have no experience with troubled banks and potential bank failures....more

Locke Lord LLP

Unexpected Rescue: Observations on ‎the Silicon Valley Bank Closure and Ongoing Market Disruptions

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Over the past several days, Locke Lord LLP has closely followed the closures of Silicon Valley Bank ‎in Santa Clara, California (“SVB”) and New York based Signature Bank, as well as the ensuing ‎volatility experienced by many...more

WilmerHale

A Look At The Feds' Extraordinary Reaction To SVB Collapse

WilmerHale on

On Sunday evening, the U.S. Department of the Treasury, Federal Reserve, and the Federal Deposit Insurance Corporation announced measures to (1) prevent losses to all depositors — including all uninsured depositors — after...more

DarrowEverett LLP

Protection From Panic Starts With These Proactive Banking Strategies

DarrowEverett LLP on

The fast and furious developments related to Silicon Valley Bank (“SVB”), Signature Bank, and others had depositors, employees, landlords, lawyers, accountants, and fiduciaries from nearly every sector scrambling for...more

Jackson Walker

An Overview of US Government Actions After Closures of Silicon Valley Bank and Signature Bank

Jackson Walker on

Below is a brief synopsis of the failures of Silicon Valley Bank (“SVB”) and Signature Bank, NA (“Signature Bank”) and the actions taken by the U.S. government in response to these failures. Silicon Valley Bank...more

Ballard Spahr LLP

Silicon Valley Bank Receivership FAQ

Ballard Spahr LLP on

Summary - The past four days have been a roller coaster for many investors; the events of Friday, March 10, that saw the largest failure of a bank since 2008, have put many on edge. On Sunday, the Fed, Treasury, and FDIC...more

Troutman Pepper

Federal Agencies Take Unprecedented Action to Strengthen Public Confidence in Banking System

Troutman Pepper on

On March 10, the California Department of Financial Protection and Innovation closed Silicon Valley Bank and appointed the Federal Deposit Insurance Corporation (FDIC) as its receiver. Silicon Valley Bank had 17 branches in...more

Foley Hoag LLP

SVB Closure: Public Company Disclosure Considerations

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Since Friday, March 10, 2023, more than 300 public companies have filed current reports on Form 8-K regarding the closure of Silicon Valley Bank ("SVB"). Company disclosure in these 8-Ks falls essentially into four...more

UB Greensfelder LLP

Federal Government Makes Significant Moves to Instill Confidence in US Banking System

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On Sunday evening, March 12, 2023, two extraordinary joint press releases were simultaneously issued by the U.S. Department of Treasury, the Federal Reserve Bank, and the Federal Deposit Insurance Corporation (FDIC). The...more

Royer Cooper Cohen Braunfeld LLC

Silicon Valley Bank and Signature Bank Closures; Federal Regulators Announce Plan to Protect Depositors

On Friday, March 10, 2023, the California Department of Financial Protection & Innovation, aided by the Federal Deposit Insurance Corporation (“FDIC”) shuttered Silicon Valley Bank (“SVB”) over concerns surrounding its...more

Locke Lord LLP

Potential Impact of the Silicon Valley ‎Bank Insolvency on the Insurance Industry

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Financial institutions, including Insurers, are considering the potential impact of the Silicon Valley Bank’s (“SVB’s”) insolvency. SVB and its parent holding company have provided funding and debt financing to InsurTech...more

Foley Hoag LLP

FDIC Creates Silicon Valley Bridge Bank, N.A. and Issues Updated FAQS

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The FDIC has also posted updated FAQs on its website confirming that direct deposits and autopay will continue to operate and that checks will continue to clear. Customers with lines of credit are instructed to contact...more

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