Dear Clients and Friends,
Further to the update circulated yesterday, the FDIC, US Federal Reserve and US Treasury Department released a joint statement overnight, announcing that SVB account depositors will have access to all of their funds, starting today – Monday, March 13. Read here >>
The aforementioned statement also applies to Signature Bank which was also closed by its state chartering authority over the weekend.
In addition, the U.K. Government announced that HSBC Holdings has acquired SVB UK, the British branch of the American bank. Read here >>
Following the key takeaways and practical insights provided yesterday, please be aware of the following points, based on information currently known:
- SVB credit facilities – as noted yesterday, the FDIC has frozen all lines of credit and, at this time, they are not currently available to be utilized. The FDIC has yet to provide an update regarding the treatment of such credit facilities, and as such, the FDIC's guidelines require that you should continue to make your loan payments (likely not relevant for most borrowers until April 1). Any client who has an existing credit facility with SVB is encouraged to reach out to us for further guidance and analysis of existing obligations and alternative financing options.
- Potential fraud / phishing – as noted in our initial update, please be on high alert for any attempted fraud and/or phishing in connection with your SVB account, particularly with respect to payments and other account activities. This warning also applies to payments made to third parties who had an account with SVB or otherwise have provided updated account information recently.
As this is an ongoing and fast-moving situation, we will continue to provide updates and insights as they become apparent.
Should you have any further questions, please do not hesitate to reach out:
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