SVB Financial Must Wait to Get Back $2 Billion from FDIC
- Bondholders owed over $3.3 billion vow to fight FDIC for cash
- FDIC says SVB Financial should file claim in receivership case
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The former owner of Silicon Valley Bank, seized earlier this month by regulators, will need to wait, possibly for several months, to know if it can get back about $2 billion in cash it would need to repay bondholders and other creditors.
SVB Financial Group won provisional court approval Tuesday to spend only a fraction of the cash the company claims federal regulators must return. What happens with the rest of the money will need to be decided in the coming months, with lawyers for bondholders owed more than $3.3 billion saying they are concerned that the Federal Deposit Insurance Corp. will try to keep the cash.