A federal lawsuit in California is challenging First Citizens Bank & Trust over its claim to the Silicon Valley Bank brand following the former tech-friendly institution’s collapse and government takeover.
Takeaway: SVB, a San Francisco Bay-area bank, collapsed in March 2023, becoming the second-largest bank failure in U.S. history at that time. Last month, the Federal Deposit Insurance Corp. sued 17 former SVB executives in a California federal court, accusing them of gross negligence and breaches of fiduciary duty. As the bank’s receiver, the FDIC alleged that reckless policies prioritizing short-term profits over stability ultimately led to the bank’s downfall.