Silicon Valley Bank Resources
On Friday, March 10, 2023, Silicon Valley Bank (SVB) was closed by the California Department of Financial Protection and Innovation (DFPI). The Federal Deposit Insurance Corporation (FDIC) was named receiver and immediately created the Deposit Insurance National Bank of Santa Clara (DINB) to facilitate the resolution of SVB.
At 6:15 pm EDT on Sunday, March 12, the FDIC, US Treasury Department and the Federal Reserve released a joint press release, which indicates that all depositors will have access to their funds as of Monday morning US time.
Cooley will continue to monitor this situation closely. Below is a compendium of informational resources intended to help clients and companies navigate the evolving situation. We will update this space as additional guidance and analysis is published. Your review or use of these resources is subject to our legal notices.
Insights
Recent Developments: Silicon Valley Bank and Signature Bank
SVB’s sudden failure going into the weekend created significant uncertainty – and prompted many questions about the ability to access accounts and funds held at the bank at the time it closed. This alert provides more details on developments between March 10 and March 13, including announcements regarding the status of SVB and Signature Bank.
Common Questions Regarding Access to Funds After Failure of an FDIC-Insured Bank
Silicon Valley Bank’s sudden failure means there are many questions about the ability to access accounts and funds held at the bank at the time it closed. Each bank customer experience may be different, and each bank customer should review its applicable account agreements and any available information regarding its balances in relevant accounts.
Additional resources
Cooley GO
Cooley PubCo blog
Securities and Exchange Commission
FDIC
- FDIC’s March 12 joint press release
- FDIC’s March 10 press release
- FDIC’s SVB resource page
- FDIC’s FAQ on SVB
DFPI
Disclaimer: The information provided herein is made available for general informational purposes only and is not intended to constitute specific legal, financial or business advice, or to be a substitute for advice from qualified counsel or other advisers. Without limiting the foregoing, this information may not reflect recent developments in the law, may not be complete, and may not be accurate in or applicable to your jurisdiction or banking relationship. Because this information is general in nature and may not pertain to your specific circumstances, you should not act or refrain from acting based on any information without first obtaining advice from professional counsel or other advisers qualified in the applicable subject matter and jurisdictions. Cooley has a policy of entering into attorney-client relationships with its clients only in accordance with certain procedures, which include executing an engagement letter and addressing conflicts of interest. You agree that your receipt of this information does not create an attorney-client or other fiduciary relationship between you and Cooley.
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