DEAR CLIENTS AND FRIENDS,
Following our last night client update, please see below new encouraging updates.
SVB BACKGROUND
On Friday, March 10, 2023, SVB was closed, and the FDIC was named as SVB’s Receiver. The FDIC created the Deposit Insurance National Bank of Santa Clara (DINB) to facilitate access to insured deposits (up to an amount of $250,000 per entity) and continuity of certain financial transactions of SVB. All other assets and liabilities of SVB remain with the FDIC as the Receiver.
POSITIVE UPDATE ON ACCESS TO SVB DEPOSITS
In a joint statement by the Department of the Treasury, Federal Reserve and the FDIC, issued on Sunday, March 12, 2023, the US Federal Government approved actions that protect all SVB depositors, and that all SVB Depositors will have access to all of their money starting Monday, March 13.
STATUS OF AUCTION FOR TAKEOVER OF SVB ASSETS
On Saturday, March 11, 2023, the FDIC commenced an auction for the assets of SVB. Final bids were due on Sunday, March 12, 2023. The results of the auction are not yet published so it is still unknown whether there will be a buyer for SVB’s assets.
HSBC ACQUIRES SVB U.K.
HSBC confirmed that its U.K. subsidiary, HSBC UK Bank, had agreed to acquire SVB U.K. for one pound (£1). The assets and liabilities of SVB U.K.’s parent company are excluded from the transaction.
UPDATE REGARDING SIGNATURE BANK
The crypto focused Signature Bank in New York was also closed by regulators on Sunday, March 12, 2023. All depositors of Signature Bank are also expected to be made whole and recover their deposits. We will provide an update once additional information regarding Signature Bank becomes available.
PLEASE DO NOT TREAT THIS MEMO AS AN OPINION OF COUNSEL AND EACH CASE SHOULD BE CAREFULLY EXAMINED ACCORDING TO THE SPECIFIC CIRCUMSTANCES THEREOF.
The FDIC regularly uploads up-to-date information, we recommend checking-in their website periodically here
As this extremely precedential and fast-moving situation unfolds, we at Shibolet Law Firm are here for any questions and are working on a webinar regarding the current events with our international US and UK colleagues and will keep you posted.
Other lenders are providing offers for the provision of quick alternative financing/credit to accommodate effected companies’ cash and other business requirements.
If you need assistance in that respect or in any other matter, please do not hesitate to contact our special task force for current events.
This update is provided as general information only and may not be relied upon in any individual case without additional legal advice.
