Former Owner of Collapsed Silicon Valley Bank Gets Bankruptcy Approval

The erstwhile proprietor of nan now-defunct Silicon Valley Bank, whose nonaccomplishment helped trigger a location slope situation past year, has received support from a national judge to extremity its bankruptcy.

SVB Financial Group tin now move complete its assets to creditors, pursuing a ruling by Judge Martin Glenn successful nan Bankruptcy Court for nan Southern District of New York Friday. 

SVB Lawsuit Against FDIC Still Unresolved

However, still successful limbo is simply a suit revenge by SVB against nan Federal Deposit Insurance Corporation (FDIC) complete nan $1.93 cardinal seized by regulators from SVB's slope accounts aft they took complete Silicon Valley Bank erstwhile it  collapsed early past year. SVB has argued that nan money, which came from 3 accounts, should beryllium returned. However, Judge Glenn sided pinch nan FDIC successful arguing that nan determination should beryllium made successful a abstracted tribunal case, which was revenge successful Northern California.

Silicon Valley Bank, which catered to nan tech manufacture successful California, ran into problem erstwhile it was deed by a unreserved of depositors to retreat their money successful March 2023. It was nan first of respective failures that rippled done nan industry, which led to caller national regulations for location banks. Following nan takeover, nan FDIC sold Silicon Valley to First Citizens BancShares (FCNCA) subsidiary First Citizens Bank.