News & Analysis as of

Insolvency Federal Deposit Insurance Corporation

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

ArentFox Schiff

Avoiding Collateral Damage: Lessons of Lehman [Part II]

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In light of the banking failures of Silicon Valley Bank, Signature Bank and First Republic (as well as Credit Suisse), this summer, the Federal Reserve and the FDIC proposed guidance and rules for larger banks to (i) develop...more

Jones Day

FDIC Proposes Toughening CIDI Resolution Plan Rules

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In Short - The Situation: The Federal Deposit Insurance Corporation ("FDIC") has proposed significant amendments (the "Proposal") to its rule requiring covered insured depository institutions ("CIDIs") to prepare and file...more

Proskauer Rose LLP

Tips For Negotiating With A Swap Dealer In Distress

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Over the past two months, the markets have been roiled by banks in financial distress. Some banks have received influxes of capital, while others were taken over by regulators or a competitor. Banks and the global...more

Seward & Kissel LLP

Beyond Insolvent? Sus Celsius Transactions, Voyager Destination, and FDIC v. SVB

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Below is our initial take on recent bankruptcy-related developments: Bed Bath & Beyond has been warning of a potential bankruptcy since early January. It finally filed for bankruptcy protection and has asked the courts for...more

Latham & Watkins LLP

FDIC Vice Chairman Cautions Against New Regulation as a Response to Recent Bank Failures

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In contrast with the White House’s position, the Vice Chairman denied that loosened Dodd-Frank rules contributed to the recent bank failures. On April 12, 2023, Federal Deposit Insurance Corporation (FDIC) Vice Chairman...more

Proskauer - The Capital Commitment

Portfolio Companies in Distress: Navigating the Risks from SVB and Other Threats to Liquidity and Solvency

Everything, everywhere, all at once is our risk thesis for 2023, but one must not forget about concentration risk. This issue has rocketed up diligence agendas for LPs and GPs alike as the collapse of Silicon Valley Bank...more

Proskauer Rose LLP

Dealing with a Swap Dealer in Distress

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Over the past several weeks, the markets have been roiled by banks in financial distress. Some banks have received influxes of capital, while others were taken over by regulators or a competitor. Banks and the global economy...more

Hogan Lovells

Beware the Ides of March – practical considerations if your bank is failing

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Everybody knows that, logically, banks can fail. Few expect them to. Silicon Valley Bank (SVB), the U.S.’s 16th largest bank, was closed on 10 March 2023, and the Federal Deposit Insurance Corporation (FDIC) appointed as...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

Skadden, Arps, Slate, Meagher & Flom LLP

An Introduction to the Unique Issues in Bank Holding Company Bankruptcies

On March 17, 2023, the parent of Silicon Valley Bank (SVB) filed for Chapter 11 protection in the Southern District of New York. Unlike SVB itself, its parent, as a bank holding company, was eligible for Chapter 11. In the...more

Goodwin

Two Major Bank Failures Require Government Regulators to Step In

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On March 10, 2023, the United States suffered the first major bank failure since the 2008 economic collapse. It was the nation’s 16th largest bank, with over $200 billion in assets....more

Nelson Mullins Riley & Scarborough LLP

Navigating the Business Landscape After Silicon Valley Bank and Signature Bank - Key Questions and Answers for Companies,...

Start-up, emerging, middle market and other companies and their founders, executives, and investors, are facing heightened demands in the wake of recent developments involving Silicon Valley Bank (SVB) and Signature Bank. You...more

Goodwin

Turbulent Banking Sector Renews Interest in Cash Management and Investment Policies

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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

Winstead PC

The Silicon Valley Bank Failure: Implications on Commercial Leasing

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This past Friday, March 10, 2023, the Federal Deposit Insurance Corp. (FDIC) announced its takeover of the failed Silicon Valley Bank (“SVB”) after a run on the bank late last week caused the largest-scale U.S. bank failure...more

Foley & Lardner LLP

Ripple Effect of Recent Bank Insolvencies on Real Estate

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The closure of Silicon Valley Bank (SVB) and Signature Bank, and the subsequent receivership by the Federal Deposit Insurance Corporation (FDIC), has far-reaching effects, including to commercial real estate transactions in...more

WilmerHale

A Look At The Feds' Extraordinary Reaction To SVB Collapse

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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

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

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

Morrison & Foerster LLP

Liquidity Crises and Fiduciary Duties of Directors of Early-Stage Companies

The FDIC receiverships of Silicon Valley Bank and Signature Bank have caused certain early-stage companies to face potentially crippling near-term liquidity issues. These liquidity issues may result in a company becoming...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

Cadwalader, Wickersham & Taft LLP

Special Alert: Guidance from the FDIC - FDIC Instructs Parties to Comply with Transaction Documents

We have been fielding questions since Friday from counterparties to SVB and Signature asking whether they should continue to perform under their fund finance deal documents. Syndicate banks where SVB or Signature Bank are the...more

Cadwalader, Wickersham & Taft LLP

SVB and Signature Bank Resolution – CFTC-Related Implications

Many of the transactions involving qualified financial contracts (“QFC”) with Silicon Valley Bank (“SVB”) and Signature Bank constitute Commodity Futures Trading Commission (“CFTC”) jurisdictional transactions that may be...more

Hogan Lovells

Silicon Valley Bank (SVB) and Signature Bank Collapses: Your legal and regulatory FAQs answered - Last updated March 15 @ 10:10 am

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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...more

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