Former First Republic workers file lawsuit against FDIC for unpaid retirement benefits

Nearly 170 former employees of First Republic Bank have filed a lawsuit against the U.S. Federal Deposit Insurance Corporation (FDIC), accusing the regulator of blocking their access to approximately $150 million in retirement funds. The employees allege that the FDIC stopped payments intended for them under a deferred compensation plan and instead treated them as unsecured creditors. The lawsuit is the latest fallout for the FDIC from the bank's failure earlier this year, which cost the agency's deposit insurance fund about $32 billion. The FDIC is also facing litigation from the former parent company of Silicon Valley Bank, seeking the return of about $2 billion seized after the bank's collapse.