The Federal Deposit Insurance Corporation (FDIC) is considering legal action against six former officers and eleven former directors of Silicon Valley Bank (SVB), alleging breaches of duty in their management of the bank's portfolio before its collapse in March 2023. The FDIC, which took over SVB after a sudden run on deposits, claims the bank's leadership mismanaged its finances, leading to billions of dollars in losses. The agency plans to recover these losses and may seek to recoup funds through its professional liability program.
WASHINGTON - The chairman of a leading U.S. banking regulator said Tuesday his agency is considering legal action against six former officers and eleven former directors of Silicon Valley Bank .
Gruenberg, a Democrat appointed by President Joe Biden, has said he plans to retire from the agency on Jan. 19. But the decision to authorize potential legal action was unanimously approved by the FDIC board, which includes both Democrats and Republicans. In a bid to stave off a broader panic across the banking system, the FDIC was authorized to backstop all the deposits at the bank, including large amounts of uninsured deposits, costing its deposit insurance fund an estimated $23 billion.
Gruenberg previously testified to Congress that the FDIC was investigating potential misconduct by SVB executives.
FDIC Silicon Valley Bank SVB Bank Collapse Executive Misconduct
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