U.S. Judge Rejects SVB Former Parent’s Claim to $1.7 Billion Held at Bank

According to Wallstreetcn, a U.S. federal judge ruled that Silicon Valley Bank's former parent company has no right to claim $1.7 billion it had deposited at the bank when the Federal Deposit Insurance Corporation took over the failed lender and protected other depositors' funds. U.S. District Judge Beth Labson Freeman in the Northern District of California issued the ruling on Friday, saying SVB Financial Trust cannot recover the cash because the former parent company's managers made decisions that directly led to the bank's collapse, and the FDIC's argument that the bank executives' misconduct was a substantial factor in the losses and that the trust should be liable for their negligence prevailed.