The March 2023 failures of two US banks 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 will 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.
This is an evolving situation, and 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.
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 more
Goodwin 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.
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.
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.
Samantha M. KirbyPartnerCo-Chair of Banking and Consumer Financial Services
Jennifer K. BralowerPartnerChair, Debt Finance
Sean M. DonahuePartnerChair, Public Company Advisory Practice
Michael H. GoldsteinPartnerChair, Financial Restructuring