SVB Financial Group is suing the US Federal Deposit Insurance Corporation (FDIC) as it looks to recover $1.93 billion seized by the regulator when it took over the failed Silicon Valley Bank in March.
SVB Financial said the FDIC asserted it has claims against the company to justify its refusal to pay but has not identified a single claim “despite having numerous opportunities”, media reports cited filing in a bankruptcy court on Sunday.
The company said the FDIC violated bankruptcy rules by transferring funds and refusing to honour SVB Financials’ demand to be paid, Reuters reported. The FDIC did not immediately respond to Reuters' request for comment.
The company filed for bankruptcy in March after Silicon Valley Bank became the ward of the FDIC following a $42 bank run.
The holding company has bonds and preferred stock outstanding with a face value of $7 billion that are now largely held by various distressed-asset investors.
Ownership of the cash has been a central issue since the opening bankruptcy court hearing, in which one lawyer for SVB Financial accused the FDIC of having “drained” the $1.9 amount, according to a Financial Times report.
The cash balance, which is held in an account at its banking subsidiary, is described as “the most significant asset” of the SVB Financial estate, the FT said, citing the lawsuit filed in a New York federal bankruptcy court.
SVB Financial said that unless the FDIC returned the funds, it might have to seek external financing to pay for the case, a process which it described as potentially “costly and uncertain”.
“The Debtor’s lack of access to these Account Funds is impeding its ability to reorganise and causing harm to the Debtor on a continuous basis,” SVB Financial wrote in its lawsuit.
The holding company SVB Financial said that after the US Treasury Department invoked the so-called systemic risk exception to make it legal for the FDIC to insure Silicon Valley Bank deposits greater than $100,000, the parent company was entitled to access its cash on deposit at the seized banking subsidiary.
The FDIC in previous court appearances and court papers argued that it might have so-called offset rights to claim the parent company’s cash to satisfy potential liabilities.
At issue between the two sides is who in the interim gets to possess the cash, leaving one party to submit a claim to the other over what portion it believes must be rightfully handed back, the FT report said.
SVB Financial, the parent company of Silicon Valley Bank before it was seized, is attempting to sell its remaining assets in bankruptcy.
Last week, a US bankruptcy judge allowed the company to sell its investment banking business to a group led by the division’s former chief executive, Jeff Leerink and is backed by funds managed by the Baupost Group.
The deal includes an equity financing of up to $100 million from Baupost along with a $30 million financing commitment from Mr Leerink's team, Reuters cited a court filing as saying at the time.
8 traditional Jamaican dishes to try at Kingston 21
- Trench Town Rock: Jamaican-style curry goat served in a pastry basket with a carrot and potato garnish
- Rock Steady Jerk Chicken: chicken marinated for 24 hours and slow-cooked on the grill
- Mento Oxtail: flavoured oxtail stewed for five hours with herbs
- Ackee and salt fish: the national dish of Jamaica makes for a hearty breakfast
- Jamaican porridge: another breakfast favourite, can be made with peanut, cornmeal, banana and plantain
- Jamaican beef patty: a pastry with ground beef filling
- Hellshire Pon di Beach: Fresh fish with pickles
- Out of Many: traditional sweet potato pudding
MATCH INFO
Norwich City 0 Southampton 3 (Ings 49', Armstrong 54', Redmond 79')
The Word for Woman is Wilderness
Abi Andrews, Serpent’s Tail
UAE currency: the story behind the money in your pockets
Brief scoreline:
Manchester United 2
Rashford 28', Martial 72'
Watford 1
Doucoure 90'
Read more from Aya Iskandarani
Killing of Qassem Suleimani
Killing of Qassem Suleimani
RESULT
Norway 1 Spain 1
Norway: King (90 4')
Spain: Niguez (47')
Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
BlacKkKlansman
Director: Spike Lee
Starring: John David Washington; Adam Driver
Five stars
UAE currency: the story behind the money in your pockets
The specs
Engine: 2-litre 4-cylinder and 3.6-litre 6-cylinder
Power: 220 and 280 horsepower
Torque: 350 and 360Nm
Transmission: eight-speed automatic
Price: from Dh136,521 VAT and Dh166,464 VAT
On sale: now
The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
On sale: Now
UAE currency: the story behind the money in your pockets
RESULT
Argentina 0 Croatia 3
Croatia: Rebic (53'), Modric (80'), Rakitic (90' 1)
RESULTS
6.30pm: Meydan Sprint Group 2 US$175,000 1,000m
Winner: Ertijaal, Jim Crowley (jockey), Ali Rashid Al Raihe (trainer)
7.05pm: Handicap $60,000 1,400m
Winner: Secret Ambition, Richard Mullen, Satish Seemar
7.40pm: Handicap $160,000 1,400m
Winner: Raven’s Corner, Richard Mullen, Satish Seemar
8.15pm: Dubai Millennium Stakes Group 3 $200,000 2,000m
Winner: Folkswood, William Buick, Charlie Appleby
8.50pm: Zabeel Mile Group 2 $250,000 1,600m
Winner: Janoobi, Jim Crowley, Mike de Kock
9.25pm: Handicap $125,000 1,600m
Winner: Capezzano, Mickael Barzalona, Salem bin Ghadayer
A meeting of young minds
The 3,494 entries for the 2019 Sharjah Children Biennial come from:
435 – UAE
2,000 – China
808 – United Kingdom
165 – Argentina
38 – Lebanon
16 – Saudi Arabia
16 – Bangladesh
6 – Ireland
3 – Egypt
3 – France
2 – Sudan
1 – Kuwait
1 – Australia
'Will%20of%20the%20People'
%3Cp%3E%3Cstrong%3EArtist%3A%20%3C%2Fstrong%3EMuse%3Cbr%3E%3Cstrong%3ELabel%3A%20%3C%2Fstrong%3EWarner%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%202.5%2F5%3C%2Fp%3E%0A
