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Banking

Jan. 21, 2025

FDIC sues 17 former SVB leaders over bank's collapse

The Federal Deposit Insurance Corporation has filed a high-stakes lawsuit against 17 former Silicon Valley Bank executives and directors, claiming their reckless actions and neglect of fiduciary duties caused the bank's catastrophic 2023 collapse.

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The Federal Deposit Insurance Corporation sued 17 former Silicon Valley Bank officers and directors for billions in damages, accusing the defendants of causing the bank's March 2023 failure by "egregiously mismanaging" its assets.

The complaint filed on Jan. 16 in the Northern District of California comes almost two years after the FDIC was named as receiver for SVB and took control of the bank and its liabilities after the bank went under on March 10, 2023. The day...

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