Can Directors/Officers be Liable for Depositing Corporate Funds in and Borrowing from a Bank Taken Over by the FDIC?

The Silicon Valley Bank (SVB) collapse marks the largest receivership since Washington Mutual failed in 2008. While the FDIC and the Treasury Department have since stepped in to ensure that all deposits are protected, this episode is an opportunity for corporate directors and officers to reassess their current risks relating to cash management and investment policies in the current environment of economic uncertainty. Public corporations should also assess their risk factors relating to cash management policies.