SVB's former owner sues US banking watchdog to recover $1.9bn

'Most significant asset' of the group

Silicon Valley Bank’s former owner, SVB Financial Group, has sued the US Federal Deposit Insurance Corporation as it seeks to recover $1.9bn in cash the regulator has held since taking over the group’s banking arm in March.

SVB Financial Group filed a voluntary petition for Chapter 11 bankruptcy in New York on 17 March. In a filing in a bankruptcy court on Sunday (9 July), the group said retention of the cash by the FDIC violated US bankruptcy law, according to the FT.  The cash balance, which is held in an account at its banking subsidiary, was described by the group as "the most significant asset" of the SVB Financial estate. SVB's parent company files for 'reorganisation' bankruptcy SVB Financial said the lack of access to the funds was affecting its reorganisation, as the money should be generatin...