Benjamin Butterfield

Mar 22, 2023 | jdsupra.com | Benjamin Butterfield |Henry Fields |Dillon Guthrie

UPDATE (3/20 PM):Developments Related to Flagstar Bank, SVBB, SVB Financial Group, Credit Suisse, and First Republic BankOn March 19, 2023, the FDIC announced that the agency has entered into a purchase and assumption agreement for “substantially all deposits and certain loan portfolios” of Signature Bridge Bank, N.A. by Flagstar Bank, N.A., a subsidiary of New York Community Bancorp, Inc. The deal does not include Signature Bridge Bank’s digital banking business.

Mar 16, 2023 | jdsupra.com | Benjamin Butterfield |Theresa A. Foudy |Seth Kleinman

The FDIC receiverships of Silicon Valley Bank and Signature Bank have caused certain early-stage companies to face potentially crippling near-term liquidity issues. These liquidity issues may result in a company becoming insolvent. Therefore, boards of directors of such companies need to consider their fiduciary duties as well as steps that can be taken to mitigate risks. Fiduciary duties are typically owed to the company for the benefit of its owners.

Mar 14, 2023 | jdsupra.com | Benjamin Butterfield |Theresa A. Foudy |Seth Kleinman

The March 2023 banking crisis has been an unexpected “stress test” for dealing with liquidity issues. When state regulators closed Silicon Valley Bank this past Friday, many startups understandably faced severe liquidity issues triggered by the sudden and unexpected loss of access to their deposits. Fortunately, this crisis appears to have been averted.

Mar 13, 2023 | jdsupra.com | Benjamin Butterfield |Henry Fields |Dillon Guthrie

UPDATE (3/12 PM): U.S. Treasury Uses Systemic Risk Exception to Protect Depositors of Failed Banks and the Federal Reserve Board Establishes New Emergency Facility Following the failure of Silicon Valley Bank (SVB) on March 10, 2023, U.S. Treasury Secretary Janet Yellen approved actions enabling the Federal Deposit Insurance Corporation (FDIC) to complete its resolution of SVB in a manner that ensure that depositors of SVB have access to their insured and uninsured funds starting on Monday,...