SVB Monetary Group, the mother or father of the now-collapsed Silicon Valley Financial institution, introduced a lawsuit towards US Federal Deposit Insurance coverage Company (FDIC) to recuperate $1.93 billion, which the regulator seized through the takeover of the failed financial institution.
In accordance with the court docket submitting on Sunday, the lawsuit got here after the regulator asserted its claims towards SVB Monetary Group for refusal of the fee. The corporate blamed the regulator for not figuring out even a single declare “regardless of having quite a few alternatives.”
The lawsuit highlighted that the regulator violated the chapter guidelines by transferring the funds and refusing to pay the claims.
The FIDC took over the Silicon Valley Financial institution final March as the financial institution failed. Nevertheless, to mitigate the scenario, the US federal authorities jumped in to ensure the deposits of all depositors even past the FIDC-insured sums. The financial institution was declared bankrupt.
The chapter course of led to the holding of the corporate’s bonds and most popular inventory excellent with a face worth of $7 billion held by a number of distressed-asset traders. The holding of the money additionally raised a whole lot of controversy as one lawyer representing the SVB Monetary Group earlier stated that the FIDC illegally “drained” $1.9 billion, which was labelled as “probably the most vital asset” of the property.
The Firm Wants the Money
SVB Monetary is arguing that it’s entitled to entry the money held on the account of its subsidiary, because the US Treasury Division invoked the systemic danger exception, which allowed the FIDC to insure the financial institution deposits of greater than $100,000, Monetary Instances famous. In earlier court docket filings, SVB Monetary requested for entry to the funds to repay its liabilities.
“The Debtor’s lack of entry to those Account Funds is impeding its means to reorganize and inflicting hurt to the Debtor on a steady foundation,” SVB Monetary famous within the newest lawsuit, highlighting that if the FIDC doesn’t return the money, the corporate may need to hunt exterior financing to proceed with the authorized combat.
Final month, SVB Monetary bought its funding banking division to a buyout group led by Jeffrey Leerink for about $80 million, Finance Magnates reported.
SVB Monetary Group, the mother or father of the now-collapsed Silicon Valley Financial institution, introduced a lawsuit towards US Federal Deposit Insurance coverage Company (FDIC) to recuperate $1.93 billion, which the regulator seized through the takeover of the failed financial institution.
In accordance with the court docket submitting on Sunday, the lawsuit got here after the regulator asserted its claims towards SVB Monetary Group for refusal of the fee. The corporate blamed the regulator for not figuring out even a single declare “regardless of having quite a few alternatives.”
The lawsuit highlighted that the regulator violated the chapter guidelines by transferring the funds and refusing to pay the claims.
The FIDC took over the Silicon Valley Financial institution final March as the financial institution failed. Nevertheless, to mitigate the scenario, the US federal authorities jumped in to ensure the deposits of all depositors even past the FIDC-insured sums. The financial institution was declared bankrupt.
The chapter course of led to the holding of the corporate’s bonds and most popular inventory excellent with a face worth of $7 billion held by a number of distressed-asset traders. The holding of the money additionally raised a whole lot of controversy as one lawyer representing the SVB Monetary Group earlier stated that the FIDC illegally “drained” $1.9 billion, which was labelled as “probably the most vital asset” of the property.
The Firm Wants the Money
SVB Monetary is arguing that it’s entitled to entry the money held on the account of its subsidiary, because the US Treasury Division invoked the systemic danger exception, which allowed the FIDC to insure the financial institution deposits of greater than $100,000, Monetary Instances famous. In earlier court docket filings, SVB Monetary requested for entry to the funds to repay its liabilities.
“The Debtor’s lack of entry to those Account Funds is impeding its means to reorganize and inflicting hurt to the Debtor on a steady foundation,” SVB Monetary famous within the newest lawsuit, highlighting that if the FIDC doesn’t return the money, the corporate may need to hunt exterior financing to proceed with the authorized combat.
Final month, SVB Monetary bought its funding banking division to a buyout group led by Jeffrey Leerink for about $80 million, Finance Magnates reported.
