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SVB Financial (OTCPK:SIVBQ) sued the U.S. Federal Deposit Insurance Corp. (FDIC) to recover over $1.93B that was seized by the regulator when it took over the failed regional lender in March.
The bank said the lack of access to these funds, which it called its core estate asset, is “impeding its ability to reorganize, and causing harm on a continuous basis,” according to the lawsuit.
“The funds should be generating more than $100M in annual interest for the estate at current rates,” it said. “Without immediate payment, the Debtor (OTCPK:SIVBQ) likely will have to obtain costly and uncertain debtor-in-possession financing.”
A bankruptcy judge in May ordered the FDIC to return $10M in seized tax refund checks to SVB (OTCPK:SIVBQ) over the Silicon Valley Bank rescue.
The FDIC estimated that its moves to backstop uninsured depositors at Silicon Valley Bank (OTCPK:SIVBQ) and Signature Bank cost its Deposit Insurance Fund ~$15.8B.
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Image and article originally from seekingalpha.com. Read the original article here.