Distressed Banks – What You Need to Know

The ripple effects from the sudden collapse of more than one federally insured bank are being felt throughout the financial services and emerging business sectors. Policymakers and US government agencies have stepped in to reinforce the stability of the banking system, but lingering questions for bank customers, counterparties, and creditors remain.

The legal and practical issues are complex and raise numerous questions, including how the FDIC receivership process and related government actions will impact (1) the practical access to funds held at these institutions, (2) other banks and financial institutions, (3) potential follow-on litigation, (4) cash managements and positioning options, (5) payroll concerns, and (6) bankruptcy proceedings of affected companies and institutions.

Morgan Lewis is well suited to identify and understand these issues and to advise clients on how best to protect their interests. Our Distressed Banks Task Force—encompassing partners and former government officials from our banking regulatory, investment management, litigation, antitrust, restructuring, emerging business, and SEC regulatory practices—stands ready to provide answers and guidance on these and other issues that will arise.

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Recent Updates

04/14/2023 - Common Cash Management Practices and Associated Protections and Risks

03/14/2023 - SVB and Distressed Banks: Lessons Learned from a Wild Weekend

03/13/2023 - Silicon Valley Bank Shutdown: Antitrust Considerations

03/12/2023 - Silicon Valley Bank Collapse: Initial Issues Raised