Shareholders filed a class-action lawsuit in California federal court against the SVB financial group and two of its top managers. In particular, shareholders accuse the bank’s CEO Greg Becker and CFO Daniel Beck of deliberately concealing information that the increase in interest rates by the Fed led to a liquidity crisis and undermined the bank’s client business model, and also significantly worsened its competitive position compared to other retail banks.
In a statement of claim, SVB shareholders require the management of the financial group to disclose data on a causal relationship between the bank’s crypto-oriented client policy and the administration’s declared losses of $1.8 billion from the sale of assets. Silicon Valley shareholders are also seeking compensation for unspecified damages to SVB investors caused to them between June 16, 2021 and March 10, 2023.
Previously, Barney Frank, board member of yet another troubled cryptocurrency bank, Signature, accused US regulators of deliberately trying to discredit the crypto industry by taking advantage of the situation around Silvergate and SVB.
Source: Bits

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