We haven’t written about Silicon Valley Financial institution in nearly a yr, however the saga of the third-largest financial institution collapse continues.
SVB’s mother or father firm, SVB Monetary Group, had $2 billion on deposit at its financial institution subsidiary. When the FDIC made it clear that each one depositors can be made entire, one would assume that included the $2 billion of the mother or father firm’s cash.
However the FDIC has thus far refused to pay. Now, the lawsuits are flying.
For some time, it regarded just like the mother or father firm would get their cash as $2.12 billion was moved to the bridge financial institution, and the mother or father withdrew $177 million. However then the FDIC halted these payouts.
Attorneys ?for SVB Monetary Group argue that ?”the FDIC’s act was tantamount ?to theft” given the general public assurances on the security of deposits.
The FDIC will not be commenting on the pending litigation. It is going to be left ?to a California court docket to determine.
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The mud had barely settled after Silicon Valley Financial institution’s collapse final yr when savvy buyers started lining up for a giant payout, primarily based on a rapidly written authorities press launch.
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