By Jonathan Stempel
Aug 31 (Reuters) - A U.S. judge said the former parent of Silicon Valley Bank cannot pursue a $1.71 billion claim against the FDIC stemming from the bank's March 2023 collapse, one of the largest U.S. bank failures.
In a 206-page decision on Friday, U.S. District Judge Beth Labson Freeman in San Jose, California, held that a trust that took over the parent's claims was responsible for former executives' ill-fated decisions to try boosting profit by investing heavily in long-term government bonds and mortgage-backed securities.
Silicon Valley Bank collapsed after rising interest rates caused at least $4.52 billion of losses in the bank's investment portfolio, sparking a bank run that disrupted many technology startups whose deposits it held.
Most of the bank's deposits were uninsured. The bank's demise presaged the collapses of two other large lenders in 2023, Signature Bank and First Republic Bank.
#former #deposits
Aug 31 (Reuters) - A U.S. judge said the former parent of Silicon Valley Bank cannot pursue a $1.71 billion claim against the FDIC stemming from the bank's March 2023 collapse, one of the largest U.S. bank failures.
In a 206-page decision on Friday, U.S. District Judge Beth Labson Freeman in San Jose, California, held that a trust that took over the parent's claims was responsible for former executives' ill-fated decisions to try boosting profit by investing heavily in long-term government bonds and mortgage-backed securities.
Silicon Valley Bank collapsed after rising interest rates caused at least $4.52 billion of losses in the bank's investment portfolio, sparking a bank run that disrupted many technology startups whose deposits it held.
Most of the bank's deposits were uninsured. The bank's demise presaged the collapses of two other large lenders in 2023, Signature Bank and First Republic Bank.
#former #deposits
2 months ago
