SVB Financial Group, the parent company of the failed Silicon Valley Bank, has filed a lawsuit against the Federal Deposit Insurance Corporation (FDIC) seeking the return of $1.9 billion seized by regulators in March.
In a US Bankruptcy Court filing, SVB Financial stated that the FDIC had failed to provide any valid reason why the money should not be returned to the bank's parent company, despite multiple opportunities to do so.
The FDIC had taken control of Silicon Valley Bank after depositors withdrew $42 billion in a single day, leading to the bank's negative cash balance. SVB Financial subsequently filed for bankruptcy protection.
The company is arguing that the FDIC's refusal to return the funds is impeding its ability to reorganize and maximize the value of its assets.
The FDIC declined to comment on the lawsuit.
SVB Financial filed for bankruptcy protection in March 2023, shortly after the FDIC took control of Silicon Valley Bank, which had collapsed due to a significant withdrawal of deposits.
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