Former executives of Silicon Valley Bank will have to face a Federal Deposit Insurance Corp. lawsuit alleging they engaged in “egregious mismanagement” and negligence that led to the bank’s 2023 collapse.
The FDIC sufficiently alleged that former SVB CEO Gregory Becker, ex-Chief Financial Officer Daniel Beck, and more than a dozen other former bank executives and board members failed to properly manage SVB’s interest rate and other risks in the months before the bank’s downfall, Judge Noël Wise of the US District Court for the Northern District of California ruled Thursday.
“Defendants’ decisions considered alongside their knowledge that the bank ...
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