Financial markets have been roiled due to the failure of Silicon Valley Bank (SVB), followed shortly thereafter by the failure of Signature Bank (SB) and banks’ seizure by the FDIC on Friday. Due to the unexpected and sudden nature of the failures, the typical transaction used by the FDIC to resolve failed banks—which essentially guarantees virtually all uninsured deposits—did not immediately occur.

Late on Sunday, however, relying upon statutory authority to avoid a systemic failure in the U.S. financial markets, Treasury and other federal agencies guaranteed all deposits at SVB and SB, and also made available emergency funding to all banks to enable them to handle withdraws of funds caused by worried customers.

This session will analyze the status of the FDIC’s actions since Monday to resolve SVB and SB in a manner that prevents contagion to other banks and severe economic injury to former customers of SVB (now in receivership). Included in the discussion will be:

  • Whether assuming banks have been put into place
  • The status of the SVB and SB receiverships
  • The probable FDIC receivership claims process going forward
  • Operational alternatives for former customers of SVB and SB, including
    • Meeting payroll and addressing employee concerns
    • Obtaining alternative bank services, including the transfer of funds and the related risk analysis
    • Likely outcomes for assets and liabilities formerly held at SVB and SB, including loans, letters of credit and other bank services
    • Disclosures to investors and governmental entities
    • Litigation, and
    • Other emerging issues

In addition, as time permits, questions raised by businesses affected by the failures of SVB will be addressed.

View the materials from this session. 

  • **NOTE: Watching this recording does not allow the user to obtain CLE, CPD, CPE or HR credits.