FDIC Sues 17 Silicon Valley Bank Execs Over Bank Collapse

The Federal Deposit Insurance Corporation (FDIC) has filed a lawsuit against 17 former executives of Silicon Valley Bank (SVB), including ex-CEO Gregory Becker and ex-CFO Daniel Beck, for their alleged role in the bank's collapse. The FDIC, acting as SVB’s receiver, accuses the defendants of ignoring fundamental banking principles and internal risk policies, prioritizing profits and stock price over sound financial management. The lawsuit highlights poor decisions related to interest rate and liquidity management, particularly the bank's heavy reliance on long-term government bonds, which lost significant value as the Federal Reserve raised interest rates. This led to a liquidity crisis, exacerbated by a $294 million dividend payout, ultimately resulting in the bank's failure.