I had deposits at Silicon Valley Bank (SVB) that were assumed by First Citizens Bank. Are my deposits fully insured?
Deposits at First Citizens are insured up to the standard maximum deposit insurance amount, which is $250,000 per depositor for deposits held in the same right and capacity. For more details, see “FAQ About Recent Bank Failures in the US.”
The FDIC stated in its press release announcing the transaction with First Citizens that on Monday, March 27, 2023, “[a]ll deposits assumed by First–Citizens Bank & Trust Company will continue to be insured by the FDIC up to the insurance limit” (emphasis added).
This created confusion because the FDIC previously stated that all obligations of Silicon Valley Bridge Bank were backed by the FDIC.
We do not assume that there is any coverage for the assumed deposits beyond the $250,000 deposit insurance limit unless the FDIC expressly confirms that is the case.
I had deposits at SVB’s Cayman Islands branch. Are my deposits FDIC-insured?
No, deposits carried on the books and records of a foreign branch, such as SVB’s Cayman Islands branch, are not FDIC-insured. As such, if you were a depositor at SVB’s Cayman Island branch, you will likely be treated as a general unsecured creditor of SVB.
Your claim may have a higher priority than that of a general unsecured creditor if your deposit agreement expressly provides for payment of your deposit at an office of SVB located in the United States. Before submitting a claim, review your deposit account agreement.
The FDIC has been contacting depositors of SVB’s Cayman Islands branch by means of a notice with instructions on how to file a claim. If you wish to recover any deposits, you must file a claim on or before July 10, 2023.
The FDIC recommends that claims be filed online.
What is the status of SVB’s UK operations?Deposits at SVB’s UK subsidiary are not deposit obligations of SVB in the US. The US government’s actions with respect to SVB do not relate to customers of the UK entity. Please refer to the FAQ prepared by Goodwin’s London office for additional information concerning SVB UK.
Samantha M. KirbyPartnerCo-Chair of Banking and Consumer Financial Services
William E. SternPartner
Christine Andrea DochertyCounsel
Alexander J. CallenPartner