Government Closures of Silicon Valley Bank and Signature Bank
New York state regulators on Sunday shut down Signature Bank. Much like Silicon Valley Bank, with clients made up almost entirely of businesses, Signature Bank had a deposit base that was mostly uninsured. The sudden closure by state regulators Sunday underscored the urgency of extraordinary US efforts to backstop the nation’s banking system and quell mounting concerns among customers about the safety of their deposits.
Watch the Business Law Section of the New York State Bar Association for an informational forum about what lawyers need to know now about FDIC Insurance and bank failures. Learn how to protect your own accounts, your escrow accounts and answer client questions. Speakers will dispel myths that have developed over the past week and explain the federal government actions that resulted in paying depositors in full without concern for the $250,000 insurance limit. Get information about steps that should be taken to protect deposits in the event that the insurance limit is “reinstated,” with a special focus on escrow accounts.
Get answers to these questions and more . . .
- What happened and why is the FDIC doing this?
- Can people continue to use ATM cards or credit cards issued by Signature Bank? How about using the blank checks?
- What about loan commitments from Signature Bank and what if a loan was supposed to close next week. Am I still going to be able to close the loan?
- What about deposits at other banks, some of which exceed the insurance limits. Should I be worried?
- Who is going to pay the costs of this?
- What about my escrow account? What do I need to know now?
- March 14, 2023
- Online On-Demand