A US federal judge ruled that the former parent company of Silicon Valley Bank had no right to claim the $1.7 billion in funds it had stored in the bank when the Federal Deposit Insurance Company took over the bankrupt bank and protected other depositors' funds. US District Court Judge Beth Labson Freeman for the Northern District of California ruled on Friday that SVB Financial Trust took over its claims after the holding company went bankrupt, but since the management of the former parent company made a decision that directly caused the bank to go out of business, the trust company was unable to recover the cash. The Federal Deposit Insurance Corporation's argument is that bank executives' irregularities were a significant factor in the bank's losses, and that the trust agency is responsible for their negligence.

A US federal judge ruled that the former parent company of Silicon Valley Bank had no right to claim the $1.7 billion in funds it had stored in the bank when the Federal Deposit Insurance Company took over the bankrupt bank and protected other depositors' funds. US District Court Judge Beth Labson Freeman for the Northern District of California ruled on Friday that SVB Financial Trust took over its claims after the holding company went bankrupt, but since the management of the former parent company made a decision that directly caused the bank to go out of business, the trust company was unable to recover the cash. The Federal Deposit Insurance Corporation's argument is that bank executives' irregularities were a significant factor in the bank's losses, and that the trust agency is responsible for their negligence.