1. My entity had more than $250,000 on deposit at SVB. What happens to those amounts?
   1. Deposits in SVB are only FDIC-insured up to $250,000 per depositor for each ownership category. The FDIC’s press release with respect to SVB’s receivership published on March 10, 2023 states that depositors will have full access to their insured deposits no later than Monday morning, March 13^th. Anything in excess of $250,000 may not be insured by the FDIC and any uninsured amounts are not guaranteed to be returned. The amount, if any, of uninsured deposits that will be returned depends on the resolution process.
   2. Deposits held in different categories of legal ownership (for example, joint accounts and trust accounts) are treated as separate and distinct accounts even if at SVB. Pass-through deposit accounts (for instance, fiduciary accounts) also have different rules with respect to FDIC insurance limits.
   3. To depositors who will not have immediate access to their uninsured deposits, the FDIC will pay an advance dividend within the next week. Uninsured depositors will receive a receivership certificate for the remaining amount of their uninsured funds. As the FDIC sells the assets of Silicon Valley Bank, future dividend payments may be made to uninsured depositors (but, as noted above, there is no guarantee that uninsured deposits will be repaid).
   4. This claim will entitle uninsured depositors to certain distributions as the assets of the bank are transferred/sold and proceeds are sorted. Only if funds are available from such transactions after more senior claims are paid will the uninsured depositors receive distributions according to SVB’s resolution plan, a portion of which is publicly available.
2. Is another bank going to come and rescue or bridge SVB

a. As of now, there is no indication of that. Based on the FDIC’s announcement that it is serving as Receiver, established a “deposit insurance national bank” and is issuing paper in exchange for uninsured deposits, this appears to be a “straight deposit payoff” bank resolution, which the FDIC only pursues when it cannot find (due to time constraints or other reasons) a healthy bank or other buyer to buy the failed bank. However, it is possible that the FDIC may still be actively seeking a buyer.

b. Assuming there will be no buyer for SVB, the certificates for the uninsured deposits will receive distributions according to applicable law and SVB’s resolution plan, a portion of which is publicly available. Generally, as assets are sold, depositors who had uninsured funds may receive periodic payments (on a pro-rata "cents on the dollar" basis) on their remaining claim.

3. Do I need to file to collect deposit insurance?
   1. Depositors do not need to apply for FDIC insurance. Coverage is automatic (up to applicable limits described above) whenever a deposit account is opened at an FDIC-insured bank or financial institution and all FDIC requirements are met. A depositor does not need to make any filing in order to benefit from FDIC insurance in this case. Insured deposits will be made available by Monday, and uninsured deposits will be paid as described above, but are not guaranteed to be repaid in full.
4. Is there anything an entity with SVB deposits and a line of credit needs to do in order to “get in line” for the receivership process or are they automatically in line?
   1. Issuance of paper for uninsured deposits will be automatic.
   2. While, the FDIC press release says to call 1-866-799-0959 for customers with accounts in excess of $250,000, at the moment, representatives are busy.
5. Is the new entity Deposit Insurance National Bank of Santa Clara (DINB) now my bank?
   1. Because the FDIC seems to be pursuing a “straight deposit payoff” resolution, it does not appear that the DINB will operate as a going concern.
6. Will SVB file for Bankruptcy?
   1. No, the Bankruptcy Code does not cover banks. Instead, the FDIC receivership process provides for the orderly distribution of a bank’s assets.
7. My company had a loan with SVB and a payment is due at the end of the month – how will I be able to avoid default?
   1. The FDIC press release states that loan customers should continue to make their payments as usual.
   2. As SVB’s assets, including its loans, are sold, the purchaser(s) of those loans will begin servicing those loans. But, until a borrower is notified of any change, it should continue to make payments as usual.
8. The funds to pay my company’s next payroll are on deposit at SVB. Will my payroll servicer have access to these funds?
   1. By Monday morning, March 13, 2023, the payroll servicer should be able to access any FDIC-insured funds. Any amounts that are not insured may not be immediately available.
9. My company has incoming wire transfers scheduled to go into my deposit account at SVB – should I cancel them?
   1. Yes, if possible (taking into account any contractual and other obligations).

Alerts and Resources:

FDIC Resources:

• Failed Bank Information for Silicon Valley Bank, Santa Clara, CA
• Deposit Insurance FAQs
• Bank Failures Resources

News Releases:

• FDIC PR-16-2023 3/10/2023: Press Release regarding SVB
• The Wall Street Journal: What’s Going on With Silicon Valley Bank?
• CNBC: Here’s how the second-biggest bank collapse in U.S. history happened in just 48 hours
• Yahoo! Finance: SVB stock halted ahead of Silicon Valley Bank failure
• The New York Times DealBook: Troubles at Silicon Valley Bank Rock the Global Market
• The Wall Street Journal: Silicon Valley Bank Closed by Regulators, FDIC Takes Control
• Reuters: SVB debacle sparks rush to defensive options on fears of contagion