Get the latest tech news
FDIC Sues 17 Former Silicon Valley Bank Execs Over Collapse
"The FDIC sued 17 former executives and directors of Silicon Valley Bank on Thursday, seeking to recover billions of dollars for alleged gross negligence and breaches of fiduciary duty," reports Reuters. The move comes almost two years after Silicon Valley Bank's March 2023 collapse, which shocked f...
"The FDIC sued 17 former executives and directors of Silicon Valley Bank on Thursday, seeking to recover billions of dollars for alleged gross negligence and breaches of fiduciary duty," reports Reuters. The FDIC faulted the bank's overreliance on unhedged, interest rate-sensitive long-term government bonds such as US Treasuries and mortgage-backed securities, as rates looked set to -- and eventually did -- rise. It also objected to the payment of a "grossly imprudent" $294 million dividend to its parent that drained needed capital "at a time of financial distress and management weakness" in December 2022, less than three months before its demise.
Or read this on Slashdot
