U.S. court: ex-SVB executives liable for risk management failure, $1.71 billion claim offset
- —Court found managers concentrated risk in long-term fixed-rate securities
- —SVB Financial Trust's $1.71 billion claim offset against the bank's losses
- —$294 million dividend payment to the holding company amid worsening liquidity deemed problematic
- —At the close on March 10, 2023, SVB's assets stood at about $209 billion
Why it matters: The precedent on risk management liability matters for assessing the resilience of stablecoin custodian banks: in 2023, USDC lost its peg due to Circle's $3.3 billion in reserves held at SVB.
Source: TokenPost