Silicon Valley Bank (SVB) and Signature Bank Collapses
Silicon Valley Bank (SVB), the U.S.’s 16th largest bank, was closed on Friday, March 10, 2023, by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. Signature Bank, New York, NY was closed on Sunday, March 12, 2023, by the New York State Department of Financial Services, which also appointed the FDIC as receiver. In the evening of March 12, 2023, the U.S. Department of the Treasury, the Federal Reserve, and FDIC released a joint statement announcing that all depositors of SVB and Signature Bank would have access to all of their deposits (including deposits that were not FDIC-insured). As of Monday, March 13, 2023, the FDIC created “bridge banks” for both SVB and Signature Bank to continue their former business as usual. The FDIC is an independent agency created by the US Congress to maintain stability and public confidence in the U.S. financial system. The FDIC insures deposits; examines and supervises financial institutions for safety, soundness, and consumer protection; makes large and complex financial institutions resolvable; and manages bank receiverships.
The collapses of Silicon Valley Bank (SVB) and Signature Bank have created a plethora of legal issues and potential risks for the financial sector and other sectors, including many of our clients. We have created a multi-practice Task Force to advise those affected by this incident and other issues that will arise in connection with the situation. Visit our Addressing the legal implications of the Silicon Valley Bank closure Topic Center for additional resources and SVB Task Force contact information.
If you or your company have the account one of those bank, you should contact us by this link and we will help you to resolve a problem.