SVB Rights Protection Expert Meeting Minutes

Q1: Is it still possible to transfer money at present?

A1: External transfers are not allowed. SVB began to experience a liquidity crisis on Thursday night. According to unofficial news, only remittances initiated before 12:15 a.m. Beijing time (11:15pm U.S. Eastern time) on Friday can still be processed, but there are sources that internal transfers can still be processed.

Q2: What is the process of FDIC?

A2: For the US SVB savings account, there is a repayment guarantee of 250,000 US dollars

(1) FDIC has established a custodian bank, Deposit Insurance National Bank of Santa Clara (DINB), and all SVB insured savings have been transferred to DINB.

(2) All insured account funds will be repaid on Monday (US time), with a limit of $250,000 per account (all standard account types are insured account).

(3) The FDIC will pay part of the uninsured advance dividend according to the account situation within the next week, and the specific amount is uncertain.

(4) For the remaining funds, the FDIC will give a receivership certificate, which is not regarded as a full payment guarantee, and the FDIC will liquidate/sell the remaining assets, and pay more remaining parts according to the final asset liquidation situation. This procedure is generally lengthy, usually about half a year to a year, and the final funds cannot be guaranteed to be fully recovered.

Q3: Can non-US accounts opened with SVB be protected?

A3: No, only US Branch.

Q4: Can different accounts under the same company name pay 250,000 multiple times?

A4: No, according to the official guideline, per depositor, per insured bank, for each account ownership category, the same corporation/partnership counts as the same depositor, but different account types can be protected by 250,000 US dollars respectively ( Single Accounts, Employee Benefit Plan Accounts, etc.), it is recommended to refer to the latest guidance from FDIC (FDIC: Your Insured Deposits).

Q5: What percentage of uninsured funds will be repaid?

A5: Depends on the process of asset liquidation. Industry insiders estimate at least 90% (estimated by James McCann), and the cycle may last for 3-6 months (estimated by Bill Ackman). Referring to the precedent of the collapse of Washington Mutual Bank 15 years ago, compared with that time, SVB is more controllable in terms of asset quality and risk scale, and there may also be a third-party takeover of funds.

Q6: What should I do next?

A6: Please take the following actions immediately; (1) If the account deposit exceeds USD 250,000, please contact the FDIC immediately to obtain a receipt certificate (2) Pay close attention to FDIC trends, such as the FDIC official website (FDIC: Press Releases 2023 ) (3) Communicate with lawyers, banks and other professionals.

Q7: Is there any other way?

A7: There is no guarantee that there will be any effect, it is just a possible attempt: transfer to the recipient who has previously received the transfer. In fact, some institutions have successfully operated this kind of operation before this Friday, and the account will be restored next Monday. By then Try to transfer money to the account that has previously received the transfer as soon as possible, and communicate in advance.