No Guarantee Systemic Risk Exception Will Save the Next Bank

As observed with the rescue of Silicon Valley Bank (SVB) and Signature Bank, the systemic risk exception allows the Federal Deposit Insurance Corporation (FDIC) to intervene in situations where the stability of the financial system is at risk. Although it was deployed in the 2008 financial crisis and more recently in the latest banking turmoil, there is no guarantee it will be applied again, if...

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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...

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Regulators Backstop SVB Deposits, Launch Emergency Lending Facility

Joseph Cioffi was quoted in a Banking Dive article, "Regulators Backstop SVB Deposits, Launch Emergency Lending Facility."

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SVB's Failure May Constrict Flow of Capital to Some Startups

Joseph Cioffi was quoted in a Law.com's Corporate Counsel article, "SVB's Failure May Constrict Flow of Capital to Some Startups."

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Signature Bank’s Failure Prompts Alarm Bells for Law Firms

Joseph Cioffi was quoted in The American Lawyer article, "Signature Bank’s Failure Prompts Alarm Bells for Law Firms."

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Cannabis-adjacent Bankruptcy Eligibility Update: Significant New Decision

Around the time Reuters published our article regarding bankruptcy eligibility, the U.S. Bankruptcy Court for the Central District of California (LA Division) issued a decision in In re The Hacienda Company, LLC, that thoughtfully articulates the balancing of governmental policies, bankruptcy purposes and creditors’ rights a bankruptcy court should engage in when dealing with cannabis and...

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Lightning Rod? Dealer Incentives Eyed in CAC Complaint

Joseph Cioffi was quoted in an SCI article, "Lightning Rod?," regarding the CFPB's suit against subprime auto lender, Credit Acceptance Corporation.

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