We haven’t written about Silicon Valley Financial institution in virtually a yr, however the saga of the third-largest financial institution collapse continues.
SVB’s father or mother 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 father or mother firm’s cash.
However the FDIC has thus far refused to pay. Now, the lawsuits are flying.
For some time, it appeared just like the father or mother firm would get their cash as $2.12 billion was moved to the bridge financial institution, and the father or mother 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 will likely be left ?to a California courtroom to resolve.
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