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3.14.23
Bipartisan Calls for Congressional Investigations in the Wake of Silicon Valley Bank Collapse
As Congress and the White House continue to grapple with the fallout of Silicon Valley Bank’s (SVB) collapse, both parties are united on one thing: Congress must investigate what happened. Following news that regulators seized New York-based Signature Bank on March 12, 2023, President Biden addressed the nation the next morning to reassure consumers and the markets that the broader financial system remains stable. But he also said that “there are important questions of how these banks got into these circumstances in the first place.” He urged a “full accounting of what happened and why those responsible can be held accountable,” saying that “no one is above the law.”1
Alerts
3.13.23
Important Tips When Establishing New Bank Accounts and Updating Wire Transfer Information
With the Federal Deposit Insurance Corporation’s (FDIC) takeover of Silicon Valley Bank (SVB), we expect a number of entities to begin establishing new bank accounts and updating wire transfer information. This creates opportunities for hackers and criminal organizations to introduce fraudulent wire transfer information in order to steal wire transfers. Failure to verify new wire transfer information prior to transferring money may be considered a failure of financial controls, and each year millions of dollars are lost to this type of fraud. Please keep the following information in mind if you are asked to wire money to a new bank account.
Alerts
3.13.23
SVB Is Now a Full-Service "Bridge Bank": Key Legal Considerations for Companies Considering Whether to Transfer Funds from SVB
In the latest development around the closure of Silicon Valley Bank and the appointment of the Federal Deposit Insurance Corporation (FDIC) as receiver, the FDIC announced today that it has transferred all bank deposits—both insured and uninsured—to a newly created, full-service FDIC-operated “bridge bank.” The FDIC has also transferred over substantially all assets (including all lines of credit of the bank, as clarified in updated FAQs released by the FDIC). The bridge bank, Silicon Valley Bank, N.A. (SVB N.A.), is a fully operational national bank. However, SVB N.A. is operated by the FDIC on an interim basis as it markets SVB to potential bidders.
Alerts
3.12.23
Extraordinary Announcement from the Treasury, Fed, and FDIC Following the Silicon Valley Bank Closure
In an extraordinary joint statement, the Treasury, Federal Reserve, and the FDIC announced measures today to strengthen confidence in the U.S. banking system following the closure of Silicon Valley Bank (SVB).