The Commission has been in contact with banking regulators following the recent failures of Silicon Valley Bank and Signature Bank concerning the transfer by the Federal Deposit Insurance Corporation (FDIC) of qualified financial contracts (QFCs) from the failed banks to newly established bridge banks, Silicon Valley Bridge Bank, N.A. and Signature Bridge Bank, N.A., respectively.  To the extent that the transfer of QFCs that are swaps would cause them to be subject to certain Commission swaps regulations (including business conduct, margin, clearing, and trade execution requirements), the Commission will not commence enforcement action for violations of such regulations resulting solely from the FDIC ordered transfers.  The Commission further recognizes that transfer of QFCs that are swaps to the newly established bridge banks may impact the ability of reporting counterparties for such swaps to fulfill their obligations under the Commission’s swaps reporting requirements.  Reporting counterparties should use best efforts to fulfill their reporting obligations with respect to such swaps.  The Commission will consider further action related to swaps reporting obligations as appropriate.