(Reuters) — 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 that caused the bank’s March 2023 collapse, one of the largest US banking failures.
In a complaint filed in San Francisco federal court, the FDIC, in its capacity the bank’s receiver, said the defendants ignored fundamental standards of prudent banking and the bank’s own risk policies in letting the bank take on excessive risks to boost short-term profit and its stock price.
The FDIC faulted the bank’s overreliance on unhedged, interest rate-sensitive long-term government
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