Former owner of Silicon Valley Bank sues US watchdog for $1.9bn in seized funds

SVB Financial Group, the former owner of Silicon Valley Bank (SVB), has filed a lawsuit against the US Federal Deposit Insurance Corporation (FDIC), accusing it of violating US bankruptcy law by keeping $1.9bn in cash after taking over SVB's banking arm. The FDIC's failure to return the funds is hindering SVB Financial's ability to reorganize and causing continuous harm to the debtor. SVB Financial Group's lawsuit comes after the FDIC seized Silicon Valley Bank's assets earlier this year, marking the largest bank collapse since the 2008 financial crisis.