FDIC 'Summarily Denies' SVB Financial Group's Claims in Jan. 5 Letters

Relevant Document:
Statement

SVB Financial Group announced that on Jan. 5, it received letters from the Federal Deposit Insurance Corp. acting in its capacity as receiver for Silicon Valley Bank and as receiver for Silicon Valley Bridge Bank N.A. denying the debtor's claims filed against the FDIC. The letters from the FDIC as receiver for the two entities - FDIC-R1 and FDIC-R2, respectively - are attached to a notice filed on the docket this morning.

The letters are "substantially similar in their denial of the Debtor’s claims filed against the FDIC-R1 and FDIC-R2, respectively, and each letter summarily denies the Debtor’s claims in a mere two sentences of explanation," according to the debtor.

In its letter, the FDIC-R1 states:

"After a thorough review of your filed claims along with your supporting documentation, the Receiver has determined to disallow your claims for the following reason(s):

The deposit claim is denied as not proven to the satisfaction of the receiver due to the receiver’s defenses. All other claims are denied as speculative, unsupportable, or otherwise not proven to the satisfaction of the receiver" (emphasis added).

For its part, the FDIC-R2 letter states: 

"The deposit claim is denied as not proven to the satisfaction of the receiver because it is not a liability of the FDIC as receiver for Silicon Valley Bridge Bank. All other claims are denied as speculative, unsupportable, or otherwise not proven to the satisfaction of the receiver" (emphasis added).

The letters add that FDIC-R1 and FDIC-R2 "will not agree" to any request for an administrative review of SVBFG's disallowed claim. However, the receivers tell the debtor that "[p]ursuant to 12 U.S.C. Section 1821(d)(6), if you do not agree with this disallowance, you have the right to file a lawsuit on your claim (or continue any lawsuit commenced before the appointment of the Receiver)."

The lawsuit "must be filed within 60 days after the date of this notice. You must file your lawsuit either in the United States District (or Territorial) Court for the District where the Failed Institution’s principal place of business was located or in the United States District Court for the District of Columbia."