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Receivership Federal Deposit Insurance Corporation Financial Institutions

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

Goodwin

FAQs About US Bank Failure

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Deposit Insurance - Are the deposits at my bank FDIC-insured? Deposits held at FDIC-insured depository institutions are insured up to $250,000 per depositor for deposits held in the same “right and capacity.”...more

Cadwalader, Wickersham & Taft LLP

Financial Kaleidoscope October 2023 - Win the Bid – What’s Next in Moving On?

On March 12, 2023, the New York State Department of Financial Services appointed the FDIC as receiver for Signature Bank. The FDIC created a bridge bank, Signature Bridge Bank (“Bridge Bank”), and transferred all deposits and...more

Cadwalader, Wickersham & Taft LLP

FDIC Issues Bank Failure Post Mortem Report

Recently, the Federal Deposit Insurance Corporation (“FDIC”) issued a report from its Chief Risk Officer entitled FDIC’s Supervision of First Republic Bank. The FDIC was First Republic Bank’s primary federal banking agency,...more

Troutman Pepper

Acting Comptroller of the Currency Michael J. Hsu Issues Statements Supporting Insured Depository Institution Plan Rule at FDIC...

Troutman Pepper on

On August 29, at a Board Meeting for the Federal Deposit Insurance Corporation (FDIC), Comptroller of the Currency Michael J. Hsu issued a statement supporting the insured depository institution (IDI) Resolution Plan Rule,...more

Davidoff Hutcher & Citron LLP

What Should Mid-Market Companies Do To Protect Deposits During the Current Bank Liquidity Crunch?

Breaking Up Is Hard To Do - In the wake of the collapse of Silicon Valley Bank and Signature Bank, every chief executive officer of a mid-market privately held company had the same two questions this morning: what banks hold...more

Cadwalader, Wickersham & Taft LLP

FDIC Proposes Special Deposit Insurance Assessment After Systemic Risk Exception

The Federal Deposit Insurance Corporation (“FDIC”) Board voted (3-2) to propose a special assessment to recoup the expected $15.8 billion cost to the Deposit Insurance Fund “(DIF”) in the wake of invocation of the special...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

Wyrick Robbins Yates & Ponton LLP

The Federal Reserve and FDIC’s Reports on the Silicon Valley Bank and Signature Bank Failures – Lessons to be Learned

On April 28, 2023, the Board of Governors of the Federal Reserve System (“Federal Reserve”) and the Federal Deposit Insurance Corporation (“FDIC”) each released reports detailing the respective agency’s supervision history...more

Cadwalader, Wickersham & Taft LLP

Considerations for Counterparties Whose Swaps Are Transferred from First Republic to J.P. Morgan

On May 1, 2023, the Federal Deposit Insurance Corporation (“FDIC”) seized control of First Republic Bank (“First Republic”) and then, as receiver of First Republic, entered into a purchase and assumption agreement (“P&A”)...more

Cadwalader, Wickersham & Taft LLP

FDIC Vice Chair Hill Speaks on Recent Bank Failures

Federal Deposit Insurance Corporation (“FDIC”) Vice Chair Travis Hill gave a speech earlier this week, titled “Recent Bank Failures and the Path Ahead,” at the Bipartisan Policy Center. The speech appears to be Vice Chair...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

Dinsmore & Shohl LLP

Key Takeaways from the FDIC’s Receiverships of Silicon Valley Bank And Signature Bank

Dinsmore & Shohl LLP on

On March 10, 2023, Silicon Valley Bank and Signature Bank were closed by their respective jurisdictions’ financial service agencies due to a high influx of depositors making massive withdrawals in the week prior....more

CDF Labor Law LLP

Complying with Wage and Hour Obligations in the Face of Crisis

CDF Labor Law LLP on

The recent seizure and shutdown of two prominent regional banks – Silicon Valley Bank and Signature Bank – highlights for employers the issues that an unexpected liquidity crisis may bring. And, it’s not just banking...more

Cadwalader, Wickersham & Taft LLP

Congressional Hearings Calling Federal Regulators to Task for Recent Bank Failures

Both the Senate Banking Committee and House Financial Services Committee held hearings this week on the federal regulatory response to the failures of Silicon Valley Bank (“SVB”) and Signature Bank. Witnesses at both hearings...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.

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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

Seyfarth Shaw LLP

Silicon Valley Bank and Signature Bank

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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

Seyfarth Shaw LLP

Creditor Claims Against Silicon Valley Bank and Signature Bank

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The FDIC has announced the proof of claim deadlines for proofs of claim to be filed with the FDIC as receiver of the failed banks, Silicon Valley Bank (“SVB”) and Signature Bank. The deadline to file a proof of claim against...more

Lowenstein Sandler LLP

Getting Acquainted with the FDIC Claims Process Now to Protect Your Deposits in the Future

Lowenstein Sandler LLP on

A little over a week has passed since the Federal Deposit Insurance Corp. (FDIC) became receiver of Silicon Valley Bank (SVB) and Signature Bank (Signature), and since the issuance of the joint statement by the FDIC, the U.S....more

Cadwalader, Wickersham & Taft LLP

FDIC Seeks More Bids for SVB Receivership Assets

As we have previously discussed, after the failure of Silicon Valley Bank (“SVB”), the FDIC is operating the Silicon Valley Bridge Bank, N.A. (“Bridge Bank”) in many ways as if it’s business as usual to help preserve as much...more

Cadwalader, Wickersham & Taft LLP

SVB Financial Group Chapter 11 Case – Issues with the FDIC May Be Front and Center

As many parties expected, on March 17, 2023 SVB Financial Group (“SVB Financial” or the “Debtor”) the holding company for Silicon Valley Bank, commenced a case under chapter 11 of the United States Bankruptcy Code (the...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

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