Partners Jennifer Feldsher and Edwin Smith are featured in a Law360 article, explaining the receivership process considering the Federal Deposit Insurance Corporation’s (FDIC’s) actions regarding Silicon Valley Bank (SVB) and how it compares to traditional bankruptcy proceedings.
"An FDIC receivership is an administrative proceeding that's not before a judge or bankruptcy court," Edwin said.
"The manager, which here is the FDIC, is acting as both the trustee and the bankruptcy judge."
"In a receivership where the government didn't take those extraordinary measures, the insured piece up to $250,000 would have priority first, and then uninsured deposits would still come ahead of general unsecured creditors," Jennifer said.
The article also cites a Morgan Lewis webinar on the issue.