Compliance » Banking Crisis and D&O

Banking Crisis and D&O

April 4, 2023

aerial-view-at-group-of-business-people-working-together-and-new-on-picture-id1358416956

The federal takeover of Silicon Valley Bank and Signature Bank will have some impact on the cost and availability of D&O coverage in the financial sector, but not a dramatic one. D&O has been softening recently, and the banking industry’s troubles may slow that trend. Banks should expect sharp questioning by insurers at renewal. Other banks might be looking at the kind of putative class actions that SVB and Signature are facing, as will venture capital companies, cryptocurrency companies and their associates including attorneys and advisers, who also may be forced to defend D&O-related litigation. Derivative lawsuits that charge directors with breaching their fiduciary duties, and lawsuits by regulators are also likely. However, if current insurers leave the market, new ones are likely to step in. D&O insurers will be assessing the role social media has played in the crisis.

Critical intelligence for general counsel

Stay on top of the latest news, solutions and best practices by reading Daily Updates from Today's General Counsel.

Daily Updates

Sign up for our free daily newsletter for the latest news and business legal developments.

Scroll to Top