It Could Happen Again: What to Know If There is Another Bank Failure

Should additional FDIC-regulated banks fail, there is no guaranty the FDIC will adopt the same measures it adopted with SVB and Signature Bank (Signature), which entered receivership on March 12, 2023, just days after the commencement of SVB’s receivership. As evidenced by recent actions taken to save (at least for the time being) First Republic Bank and Credit Suisse, the banking system remains fragile, and bank customers must remain vigilant.

Below are five things to know in order to navigate another bank failure.

  1. What are the FDIC’s options to resolve a failed bank?
  2. What actions has the FDIC taken in the SVB and Signature receiverships?
  3. What could happen in the future if the systemic risk exception is not invoked?
  4. How does an FDIC receivership compare to a bankruptcy?
  5. What are the risks to certain types of businesses and relationships with a failed bank?

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