Lawsuit filed against the bankruptcy of SVB and two top executives
In a lawsuit filed in San Jose Federal Court in California, the SVB and its chief executive, Gregory Becker, and its chief financial officer, Daniel Beck, were accused of concealing the bank’s vulnerability to rising interest rates. .
The lawsuit in question was the first lawsuit filed in connection with the bankruptcy of SVB, for which the United States Federal Deposit Insurance Corporation (FDIC) appointed a receiver.
The share price fell more than 60 percent after California-based SVB closed its $21 billion bond position at a loss of about $1.8 billion and announced it would raise more than $2 billion in capital.
THE OPERATIONS HAVE BEEN SUSPENSIONED
Its operations were suspended because the bank kept losing after some venture capital investors advised companies to withdraw their money from the bank.
While the FDIC announced on March 10 that a trustee for SVB was appointed, sending markets tumbling, it was noted that SVB was the first FDIC-insured institution to fail this year.
The SVB bankruptcy was one of the largest bankruptcies recorded in the US since the 2008 global financial crisis. (BRITISH AUTOMOBILE CLUB)
Source: Sozcu
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
