FDIC defeats $1.71 billion claim over Silicon Valley Bank collapse, US judge rules

A U.S. judge blocked SVB Financial Trust (formerly Silicon Valley Bank’s parent) from pursuing a $1.71 billion claim against the FDIC over SVB’s March 2023 collapse.
The judge found executives and the board negligent for heavy bets on long-term government bonds and mortgage-backed securities as rates rose — saying the company must “live with the consequences.”
SVB’s failure (about $209 billion in assets) sparked a bank run, disrupted many tech startups with uninsured deposits, and foreshadowed the collapses of Signature and First Republic.