Managing Risks Related to the Silicon Valley Bank and Signature Bank Failures
As the fallout continues over the FDIC taking control of Silicon Valley Bank and Signature Bank—the nation’s second and third largest bank failures ever—hedge funds, private equity funds, venture capital funds, real estate funds and many other companies are grappling with serious risks and uncertainty. These risks are mounting, as other banks, such as First Republic Bank, have seen their stock prices drop by as much as 70%.
At Sadis, we are here to help you assess your risks and immediately respond to this crisis. We understand that this is a time when it is important to act quickly yet strategically. Our lawyers are experienced in handling issues arising from prior financial crises and are ready to answer any questions you may have.
Our lawyers can offer advice on a wide variety of issues raised by the crisis, including:
Immediately assessing the assets that may be at risk to protect them from losses.
Developing a plan to address the impact of bank closings on underlying investments, business partners and/or vendors.
Enhancing and/or updating due diligence on banks, custodians and other parties related to your business.
Offering litigation and regulatory advice regarding strategies to recover assets. We have previously recovered tens of millions of dollars for clients in similar circumstances.
Investor Communications: Based on our experience, staying in touch with investors and clients concerning recent developments has a material impact on delaying or eliminating the withdrawal of assets and/or threats in connection with litigation.
Preparing legal disclosures required to be made to investors, and/or creating potential structures to “sidepocket” or otherwise segregate any troubled assets;
Preparing and coordinating updates of Form ADV sections on custodian disclosures and other regulatory notices for registered investment advisers, exempt reporting advisers and broker-dealers.
Discussing tax considerations relating to restructuring or recovery of distressed investments.
Sadis’ sophistication and experience in the financial services industry makes us well-positioned to assist you at this time. We can help you adopt the right legal strategy to navigate this crisis. Please do not hesitate to contact us with any questions you may have.
