The bank failures in 2023 sent shockwaves across the innovation economy, putting companies in a variety of sectors in peril and threatening to alter larger economic dynamics. The full effects will not be known for years.
We continue to monitor the situation closely, answering clients' questions, advising them about impacts to their businesses, and keeping them informed about new developments. See below for our latest updates and analysis.
Specific circumstances should be assessed individually. Please get in touch with your Goodwin contact or a lawyer listed below to discuss any issues you may be facing.
Latest updates
The recent and sudden failures of Silicon Valley Bank and Signature Bank, and the threat of other bank failures, have led to intense public focus on what caused these banks to run into trouble, who is to blame, and what should be done about it.
Companies should consider a number of best practices to ensure they manage their cash and investment risks effectively.
See our quick take on cash management. Or for a more detailed treatment, see “Turbulence Renews Interest in Cash Management and Investment Policies”
Bank failures create opportunities for bad actors to target companies that have to change their wire transfer details to ensure they can make and receive payments. To mitigate the risk, companies should consider some best practices for avoiding scams.
Read moreGoodwin has created Model Form Bridge Financing Documents to facilitate providing urgent capital to US-based portfolio companies to enable them to make payroll and satisfy other immediate obligations.
Goodwin has created Model Form Bridge Financing Documents to facilitate providing urgent capital to UK-based portfolio companies to enable them to make payroll and satisfy other immediate obligations.
See our survey of state wage payment law issues for employers considering steps to reduce potential exposure for payroll obligations in the wake of the Silicon Valley Bank closure by the FDIC.
March 12 Webinar
On March 12, 2023, lawyers from across practices led a webinar that addressed emerging issues related to the situation, and answered questions about how it may affect companies.
March 10 Webinar
On the afternoon that the FDIC took control of SVB’s assets, partners from Goodwin’s Banking, Financial Restructuring, Debt Finance, Public Company Advisory, and Employment practices addressed emerging issues related to the situation, and answered questions about how it may affect companies.
Watch the webinar
Contacts
- /en/people/k/kirby-samantha
Samantha M. Kirby
PartnerChair, Financial Services - /en/people/c/callen-alexander
Alexander J. Callen
Partner - /en/people/s/stern-william
William E. Stern
Partner