A federal judge has granted bankruptcy approval to SVB Financial Group, the former owner of the now-defunct Silicon Valley Bank, which collapsed last year. Judge Martin Glenn’s decision allows SVB Financial Group to liquidate its assets and settle with creditors.
However, the judge’s ruling did not resolve a contentious legal battle between SVB Financial and the Federal Deposit Insurance Corporation (FDIC). SVB Financial had sought the return of $1.93 billion in deposits that were seized by regulators when the FDIC took control of Silicon Valley Bank in March 2023. Judge Glenn sided with the FDIC, stating that this dispute should be adjudicated separately in a Northern California court.
The collapse of Silicon Valley Bank, which primarily served the tech industry, triggered a broader crisis among regional banks. The FDIC intervened amid a wave of deposit withdrawals and subsequently sold the bank to First Citizens BancShares (FCNCA) through its subsidiary, First Citizens Bank.
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