SVB Financial sues US FDIC to recover US$1.93 billion

SVB Financial Group has sued the US Federal Deposit Insurance Corporation (FDIC) to recover US$1.93 billion from the regulator seized during the takeover of the failed Silicon Valley Bank in March, according to a filing in a bankruptcy court on Sunday (Jul 9).

SVB Financial owned Silicon Valley Bank (SVB) before it was seized by the regulator in March, and the firm is attempting to sell its remaining assets in bankruptcy.

In its complaint, SVB Financial said the FDIC asserted it has claims against the company to justify its refusal to pay, but has not identified even a single claim “despite having numerous opportunities”.

The company said the FDIC violated bankruptcy rules by transferring funds and refusing to honour SVB Financial’s demand to be paid.

The FDIC did not immediately respond to a Reuters request for comment. REUTERS