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Financial Markets Resource Center
The closures of Silicon Valley Bank (SVB) and Signature Bank, and subsequent Federal Deposit Insurance Corporation (FDIC) receiverships, have been unprecedented in their speed and will have significant implications for financial markets and their constituents.
Cadwalader is monitoring these developments closely and will continue to provide updates on the rapidly evolving situation. Please continue to check this Resource Center for updates and informational resources.
Each individual person's or entity’s circumstances are different and need to be taken into account in providing legal counsel. Please do not hesitate to contact your Cadwalader team for advice that is tailored to your facts and circumstances.
Insights
- The First Days: A Quick Take on a Sudden Change in the Banking Landscape
A lot of ink has been spilled in the last 72 hours regarding the historic developments involving Silicon Valley Bank and Signature Bank. Read our quick summary of the facts and law, including with respect to (i) the appointment of the FDIC as receiver, (ii) bridge depository institutions, (iii) creditors’ rights under a FDIC receivership, (iv) treatment of QFCs in a FDIC receivership, (v) liquidation, termination, netting; one-day delay, (vi) prohibition on walkaway clauses, (vii) disaffirmance or repudiation, and (viii) SVB UK.
- Key Impacts of SVB/Signature Receiverships on Fund Finance Transactions
The market turmoil of the last several days has kept us scrambling to figure out how best to get deals closed, to keep money moving and to meet our clients’ urgent needs. Read on for a discussion of a few of the key things we have learned over the past few days, and our thoughts as to how they are relevant to the functioning of the U.S. fund finance market.
- Key Impacts of SVB/Signature Receiverships on Real Estate Finance Transactions
The market turmoil of the last several days has kept us scrambling to figure out how best to get deals closed, to keep money moving and to meet our clients’ urgent needs. Read on for a discussion of a few of the key things we have learned over the past few days, and our thoughts as to how they are relevant to the functioning of the U.S. real estate finance market.
- FDIC Instructs Parties to Comply with Transaction Documents
We have been fielding questions since Friday from counterparties to SVB and Signature asking whether they should continue to perform under their fund finance deal documents. Read on for our guidance.
- Special Alert: SVB, Signature Bank and the CFTC
Many of the transactions involving qualified financial contracts (“QFC”) with Silicon Valley Bank and Signature Bank constitute CFTC jurisdictional transactions that may be affected by their respective failures. Read on for practical CFTC-related implications and considerations.
- FRB Establishes Bank Term Funding Program to Aid Liquidity Availability
Among various recent government actions taken to stabilize the banking market, the Federal Reserve Board invoked its authority under Section 13(3) of the Federal Reserve Act to establish the Bank Term Funding Program (BTFP).
- SVB Financial Group Chapter 11 Case – Issues with the FDIC May Be Front and Center
As many parties expected, on March 17, 2023 SVB Financial Group, the holding company for Silicon Valley Bank, commenced a case under chapter 11 of the United States Bankruptcy Code in the Southern District of New York.
Additional Resources
- FDIC’s March 13 Press Release (March 13)
- CFTC Statement on Swaps Rules Implicated in Recent Bank Failures (March 13)
- Bank of England’s Statement on Silicon Valley Bank (March 13)
- Silicon Valley Bridge Bank Transfer Agreement (March 13)
- Signature Bridge Bank Transfer Agreement (March 12)
- Federal Reserve’s Bank Term Funding Program (BTFP) Press Release (March 12)
- Federal Reserve’s BTFP Term Sheet (March 12)
- FDIC’s Signature Bridge Bank Press Release (March 12)
- Joint Statement by the Treasury, Federal Reserve, and FDIC (March 12)
- FDIC’s Deposit Insurance National Bank of Santa Clara (DINB) Press Release (March 10)
- Bank of England Statement on Silicon Valley Bank UK (March 10)
- FDIC’s Silicon Valley Bank Resource Page
- FDIC’s FAQ on Silicon Valley Bank
- FDIC’s Signature Bank Resource Page
