Much-anticipated reports from the FRB, the FDIC and the GAO on the Silicon Valley Bank and Signature Bank failures have been released, and the bottom line is exactly what we anticipated: subpar governance and risk management practices and serious issues around managing liquidity risk, with a little bit of self-criticism on how supervision could have been better. 

We also take a look this week at an important development: considerations for counterparties whose swaps are transferred from First Republic to J.P. Morgan.

Our London financial services regulatory partner Alix Prentice provides important coverage of the FCA’s new consultation paper on equity listing rules − a direct response to what Alix calls “a precipitous decline in the number of listed companies in the UK of around 40% from a 2008 peak.” 

A good "listen" this week is the podcast featuring our ESG Finance and Investment partner Sukhvir Basran on sustainability-linked loans. 

As always, please reach out here if there’s anything you’d like to talk about.   

Daniel Meade 
Partner and Editor, Cabinet News and Views

By Daniel Meade

Partner | Financial Regulation

By Nikita B. Cotton

Associate | Financial Regulation

Last Friday, the Federal Reserve Board and Federal Deposit Insurance Corporation released reports evaluating their supervision of the failed Silicon Valley Bank and Signature Bank, respectively. On the same day, the Government Accountability Office released its preliminary review of the actions taken by relevant federal agencies, including the FRB and FDIC, relating to the bank failures.

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By Peter Y. Malyshev

Partner | Financial Regulation

By Lary Stromfeld

Partner | Financial Regulation

By Kathryn Garland

Associate

On May 1, 2023, the Federal Deposit Insurance Corporation seized control of First Republic Bank and then, as receiver of First Republic, entered into a purchase and assumption agreement with JPMorgan Chase Bank, National Association, Columbus, Ohio, to assume all of the deposits and substantially all of the assets of First Republic, including qualified financial contracts. The asset transfer was thus carried out via the P&A Agreement, in accordance with the Federal Deposit Insurance Act and became effective without the consent of counterparties under those QFCs.

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On 3 May, the UK’s Financial Conduct Authority issued Consultation Paper CP23/10 setting out significant proposals to reform equity listing rules.

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By Sukhvir Basran

Partner | Financial Services

By Matthew Mazenier

Associate | Corporate Finance

Cadwalader recently hosted a breakfast discussion with the Loan Market Association and LSTA with the aim of “Unlocking Sustainability-Linked Loans.” During the session, Cadwalader ESG Finance and Investment partner Sukhvir Basran was joined by the LMA’s Gemma Lawrence-Pardew and the LSTA’s Tess Virmani in a conversation addressing some of the most frequently asked questions raised by market participants in respect of sustainability-linked loans.

Click here to listen to the discussion.   

Click here to read a summary.