On March 10, 2023, the California Department of Financial Protection and Innovation closed Silicon Valley Bank, Santa Clara, California (SVB) and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver of SVB. To protect insured depositors, the FDIC initially created the Deposit Insurance National Bank of Santa Clara. However, upon approval of a systemic risk exception by U.S. Secretary of the Treasury Janet L. Yellen two days after the failure of SVB, the FDIC transferred all deposits and substantially all assets of SVB to Silicon Valley Bank, N.A., a full-service bank the FDIC will operate as it markets the institution to potential bidders.
On March 12, 2023, Signature Bank, New York, NY (SigBank) was closed by the New York State Department of Financial Services, which also appointed the FDIC as receiver. As with SVB, to protect depositors, the FDIC transferred all deposits and substantially all assets of SigBank to Signature Bridge Bank, N.A., a full-service bank the FDIC will operate as it markets the institution to potential bidders.
These FAQs provide: (A) initial high-level statutory and regulatory responses to the general FDIC receivership process; and (B) initial high-level responses to common questions regarding the failure of each of SVB and SigBank. Every situation will present its own facts and circumstances; we encourage affected persons and entities to consult their counsel as needed to understand the bespoke dynamics of their situations.
THESE FAQS WERE LAST UPDATED MARCH 14, 2023.