© Reuters. A US flag flies outside a Silicon Valley bank branch in Wellesley, Massachusetts, US, March 13, 2023. REUTERS/Brian Snyder
(Reuters) – SVB Financial Group has sued the Federal Deposit Insurance Corporation (FDIC) to recover $1.93 billion from the regulator that was seized during the acquisition of failed Silicon Valley bank in March, according to a bankruptcy court filing Sunday.
SVB Financial owned a Silicon Valley bank before it was taken over by the regulator in March, and the company is trying to sell its remaining assets in bankruptcy.
SVB Financial said in its complaint that the FDIC asserted it had claims against the company to justify its refusal to pay, but did not identify even a single claim “despite the many opportunities”.
The company said the FDIC violated bankruptcy rules by diverting the funds and refusing to honor SVB Financial’s demand for payment.
The FDIC did not immediately respond to a Reuters request for comment.