SVB Financial Group is suing the Federal Deposit Insurance Corp. to recover around $1.9 billion in cash the regulator seized after taking over failed Silicon Valley Bank in March, according to a complaint filed Sunday.
The suit claims the lack of access to funds obstructs SVB Financial from reorganizing, and the account funds — “the core estate asset” — would generate more than $100 million in annual interest for the estate at current rates. If the account funds are not paid immediately, the plaintiff might need to resort to costly and uncertain debtor-in-possession financing, it noted.
