SVB Financial Group said on Tuesday the U.S. Federal Deposit Insurance Corporation had taken "improper actions" to cut it off from cash held at its former subsidiary Silicon Valley Bank, which was seized by regulators to stem a national bank run, Reuters reported. SVB Financial made the accusations in court filings ahead of its first bankruptcy hearing on Tuesday afternoon in Manhattan. It filed for chapter 11 protection about a week after California banking regulators on March 10 closed Silicon Valley Bank in the largest U.S. bank failure since the 2008 financial crisis. The collapse this month of the Santa Clara, California-based bank and Signature Bank, another U.S. midsized lender, prompted a rout in banking stocks as investors worried about other ticking bombs in the banking system and led to UBS Group AG's takeover of 167-year-old Credit Suisse Group AG to avert a wider crisis. SVB Financial is exploring options, including a potential bankruptcy sale, for its venture capital and investment banking units, which were not included in the FDIC takeover of Silicon Valley Bank, while continuing to operate its businesses, it said on Monday.
