U.S. court dismisses SVB parent’s 1.7 billion dollar claim against FDIC

A U.S. federal district court has dismissed a 1.71 billion dollar damages claim filed by SVB Financial Trust, the parent of Silicon Valley Bank, against the Federal Deposit Insurance Corp. The court found that SVB management made decisions that exposed the bank to excessive interest-rate and liquidity risk, which were substantial causes of the losses tied to the bank’s 2023 collapse. The ruling stated that the FDIC could not be held liable for losses incurred during the disposal of assets after it took over SVB. This decision followed a 12-day bench trial and eliminated the possibility for SVB to recover 1.7 billion dollars from the FDIC. The FDIC had previously used the Deposit Insurance Fund to cover costs stemming from SVB’s failure, and the ruling also removed the possibility of additional burdens on the DIF.

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