US Silicon Valley Bank parent sues federal agencies

Silicon Valley Bank parent sues federal agencies

SVB Financial Group, the parent company of SVB, filed a lawsuit against the federal agency, the FDIC, seeking the return of the seized $1.93 billion, according to a court document filed on July 9.

In the lawsuit filed, SVB Financial Group said a lack of funding hindered the restructuring effort. Without the funds, which should have accrued more than $100 million in interest annually, the company would have been forced to seek costly and uncertain ways to raise funds.

Silicon Valley Bank Financial Group stated that the practice of the Federal Deposit Insurance Corporation of the United States violated the relevant provisions of the US Bankruptcy Law. The FDIC declined to comment on the matter.

On March 10, Silicon Valley Bank was shut down by financial regulators due to insolvency. On March 17, Silicon Valley Financial Group, the parent company of Silicon Valley Bank, announced that it was seeking bankruptcy protection.

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