FDIC sues 17 former Silicon Valley Bank executives, directors over collapse
- The Federal Deposit Insurance Corp. Has sued 17 former executives and board directors of Silicon Valley Bank for alleged negligence and breach of fiduciary duty, which led to the lender's collapse in March 2023.
- The lawsuit seeks to recover billions of dollars in damages and claims the defendants failed to manage interest rate and liquidity risks before the bank's collapse.
- The complaint highlights a $294 million dividend payment that deprived Silicon Valley Bank of essential capital while the bank was in financial distress.
- The FDIC's action comes nearly two years after Silicon Valley Bank's failure, which was the third-largest bank failure in U.S. History, affecting many technology startups.
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