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[SITUATION] · [ACTIVE] · [BUSINESS]
2 clusters · 6 sources · 10 days · First seen · Last updated
Silicon Valley Bank legal proceedings
Overview
A U.S. District Judge has rejected a $1.71 billion claim brought by the former parent company of Silicon Valley Bank (SVB) against the Federal Deposit Insurance Corp (FDIC) following the bank’s March 2023 collapse.
In her decision, Judge Beth Labson Freeman of the U.S. District Court for the Northern District of California ruled that SVB executives, including the CFO and treasurer, breached their fiduciary duties. The court found that these individuals acted negligently by taking on excessive liquidity and interest-rate risks to increase profits through heavy investments in mortgage-backed securities and long-term government bonds.
The judge noted that the holding company, now succeeded by SVB Financial Trust, established the policies and metrics that led to these decisions, stating, “Having made this choice, it must live with the consequences.”
The bank’s failure was precipitated by rising interest rates that resulted in over $4.52 billion in losses within its investment portfolio, which triggered a bank run among technology-sector depositors.
Entities
Affinity Equity International Partners · Jho Low · Eric Tan · SVB Financial Trust · Silicon Valley Bank
Timeline
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3 days ago
[BUSINESS] 4 sourcesDBS Bank sued for S$1.298 billion over 1MDB-linked claimsDBS Bank is being sued for over S$1.298 billion in Singapore by liquidators of firms linked to the 1MDB scandal, involving accounts allegedly controlled by Jho Low associate Eric Tan.
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12 days ago
[BUSINESS] 2 sourcesUS judge rejects $1.71 billion SVB claim against FDICA U.S. judge ruled that Silicon Valley Bank’s former parent company cannot claim $1.71 billion from the FDIC, citing executive negligence and excessive risk-taking that led to the bank's 2023 collapse.
Sources
bankingdive.com · freemalaysiatoday.com · srnnews.com · thesun.my · toray.co.jp · tvsarawak.my