In the Press
March 21, 2023

Notes From the Brink (Bloomberg)

Silicon Valley Bank’s former parent company and the US government are starting to spar over the future of as much as $2 billion sitting at the failed bank, Bloomberg reports. Now-bankrupt SVB Financial Group is making its first court appearance on Tuesday, asking, among other things, for $2 billion it says it needs to reorganize, plus certain records that will help it keep operating, according to court filings. It’s arguing that, as a holding company, it should be allowed access to certain assets of the failed bank that are now overseen by the FDIC in order to protect itself. Ideally, the two parties will settle their differences out of court. But “SVB Financial may be teeing up some background on that for a future dispute if they can’t get it consensually resolved with the FDIC,” said Debora Hoehne, a Financial Restructuring partner.