At breakneck speed, the Federal Deposit Insurance Corporation (FDIC) has concluded a sale of Silicon Valley Bridge Bank, N.A. (formerly Silicon Valley Bank) to First-Citizens Bank & Trust Company of Raleigh, North Carolina. First-Citizens, which did not have a presence in California or Massachusetts prior to this transaction, will operate all former SVB bank branches starting on Monday, March 27.
If you are (were) an SVB customer, reach out to your Brown Rudnick lawyer. Over the last several weeks, we've advised our clients on a number of fronts related to the SVB failure, and we can help you navigate the following situations:
- I have an SVB loan that, by its terms, requires my company to maintain its deposits at SVB. I have since opened accounts at other institutions. What do I do now that SVB's business, including my loan, has been sold?
- My landlord has informed me that the SVB letter of credit my company provided to secure obligations under our lease needs to be replaced. How does the sale of SVB's credit business affect the landlord's request?
- I'm concerned about stock price drops and other issues faced by smaller, regional banks. Now that SVB's business has been purchased by another small, regional bank, what should my company do to protect itself and its cash?
- Are there ways to handle cash to ensure that we stay under the FDIC insurance limit, even if we have a cash balance greater than $250K?
If you're worried about any of these things, or anything else, call your lawyer, and then go back to running your business....