A U.S. judge has ruled that the FDIC, acting as receiver for Silicon Valley Bank, bears no liability for a $1.71 billion claim by SVB Financial Trust, removing a significant potential drain on the Deposit Insurance Fund. After a 12-day non-jury trial, U.S. District Judge Beth Labson Freeman found that former executives' heavy bets on long-term government bonds and mortgage-backed securities did not qualify for business-judgment protection and were judged under ordinary negligence standards, so the parent cannot shift those losses to the receiver. Silicon Valley Bank held about $209 billion in assets before failing in March 2023 after at least $4.52 billion in portfolio losses as rates rose, sparking a rapid, social media-fueled run among largely uninsured venture and technology depositors. Together with Signature Bank's collapse, the failure led the FDIC to invoke its systemic risk exception and guarantee all deposits. Circle disclosed that $3.3 billion of USDC reserves sat at SVB, briefly driving the stablecoin to about $0.87 before it recovered under the guarantee. The FDIC had been counting the $1.71 billion claim when setting industry special assessments to replenish the fund and is separately suing 17 former executives and directors, including former CEO Gregory Becker. A separate June 2026 ruling also confirmed the FDIC's ownership of an approximately $73 million insurance recovery claim tied to a fraud scheme.