Silicon Valley Bank's former parent can pursue $1.93 billion FDIC lawsuit

Silicon Valley Bank's former parent may pursue a lawsuit to recover $1.93 billion of deposits that the Federal Deposit Insurance Corp seized following the bank's March 2023 collapse, a federal judge ruled. In a decision on Thursday, U.S. District Judge Beth Labson Freeman in San Jose, California said the former parent, now known as SVB Financial Trust, adequately alleged that the FDIC in its corporate capacity maintained control over the deposits, though the allegations were "vanishingly thin." The agency had argued that the deposits were controlled by the FDIC in its capacity as Silicon Valley Bank's receiver, a different legal entity that the former parent is also suing.