On Friday, March 10, the Federal Deposit Insurance Corporation (FDIC) was appointed receiver of Silicon Valley Bank (SVB), which had banking relationships with nearly half of U.S. venture-backed technology and life sciences companies.
This followed a tumultuous week for SVB where announcements of a $1.8 billion loss from a sale of securities and a stock offering by its parent company intended to buttress its balance sheet unexpectedly precipitated a modern day “run on the bank.” According to an order filed by California’s banking regulator, SVB customers initiated withdrawals of $42 billion in deposits on March 9, approximately 25% of SVB’s deposit base.
The failure of SVB has created turmoil in a venture capital community already bruised from a brutal market pullback over the past year. In particular, depositors are scrambling to deal with liquidity, payroll and other operational and legal issues arising from uncertainty surrounding the amount and timing of uninsured SVB deposits that they ultimately will recover.
A cross-practice team of Pillsbury finance, emerging companies, venture capital, employment, bankruptcy, banking/FDIC regulatory, insurance recovery and crisis management lawyers has been working around the clock helping entrepreneurs, venture capitalists, officers, directors, lenders and other constituencies navigate the rapidly evolving situation. Below we synthesize key discussions addressing the most frequently asked questions we have received and select...
North Korea on Sunday rejected US allegations of cybercrimes originating from there, calling them "absurd slander" and denying it poses a cyber threat, state media KCNA reported. In 2024, a United...