SVB Financial clashes with FDIC over fate of $2bn in bankruptcy hearing

Lawyers for the part of Silicon Valley Bank that has been put into bankruptcy protection accused US bank regulators of having “drained” roughly $2bn of cash from the institution, setting the stage for a fight that will decide how much investors, including Appaloosa and Pimco, recoup in the restructuring.

The remarks on Tuesday came at an opening hearing in the bankruptcy of SVB Financial — the unit of SVB that includes its investment banking and venture investing businesses — which filed for Chapter 11 protection last Friday.