Silicon Valley Bank and Signature Bank Fallout – Legal Considerations for Borrowers, Syndicated Lenders and Trade Creditors

As the fallout from the failures of Silicon Valley Bank and Signature Bank continue to be absorbed by the market, contract counterparties to these banks are assessing their legal rights and options now that 1. the Federal Deposit Insurance Corporation (FDIC) has established two successor “bridge banks,” which have assumed the deposits and obligations of each failed bank, and 2. Silicon Valley Bank’s parent company filed for bankruptcy.