SVB Financial Group, the bankrupt former parent of Silicon Valley Bank, is losing $9 million a month in interest on deposits that were trapped when federal regulators took over the failed bank, a lawyer said yesterday in court, Bloomberg News reported. SVB Financial wants nearly $2 billion in deposits put into a court-controlled account while the holding company fights over the cash with the Federal Deposit Insurance Corp., according to court papers. The agency hasn’t provided a good reason for refusing to make payment on the deposits, SVB argues. The money is key to repaying bondholders owed billions of dollars by SVB Financial. FDIC lawyers have said in court that the defunct bank holding company must apply for the money like any other depositor. As an arm of the US government, the FDIC cannot be forced to pay interest on the disputed cash, Ben Finestone, a lawyer for agency, said yesterday in bankruptcy court.
