From Investing.com: 2025-01-16 19:32:06

The FDIC has sued 17 former executives and directors of Silicon Valley Bank for gross negligence and breaches of fiduciary duty that led to the bank’s collapse in March 2023, costing billions. The defendants are accused of ignoring prudent banking standards and risk policies, leading to excessive risks and a $294 million imprudent dividend payout.

Silicon Valley Bank’s reliance on unhedged, interest rate-sensitive long-term government bonds contributed to its downfall as interest rates rose. The collapse shocked financial markets, disrupting tech startups and uninsured customers. First Citizens BancShares acquired the bank’s assets in an FDIC-arranged sale after its collapse, which also raised concerns of a repeat of the 2008 banking crisis.

The defendants include former Chief Executive Gregory Becker, former CFO Daniel Beck, and other executives and directors. Silicon Valley Bank had $209 billion in assets when it failed, joining the ranks of other large U.S. banking failures like Lehman Brothers and Washington Mutual in 2008. The case is being heard in the U.S. District Court in Northern California under the name FDIC as receiver v Becker et al.



Read more at Investing.com: FDIC sues 17 former Silicon Valley Bank executives, directors over collapse By Reuters