In its role as receiver for Silicon Valley Bank, the Federal Deposit Insurance Corp. (FDIC) is being sued by New York City, which says that the bank owed more than $2.1 million in back taxes before it failed last year.
The city wants to get the taxes it’s owed and has pointed out “deficiencies” in company business tax for the years 2017 through 2021.
The lawsuit, which was filed in federal court in Washington, D.C., asks for a declaration of how much the FDIC took on liabilities and ongoing commitments. These court actions are part of New York City’s plan to get the failed bank to pay the back taxes.
Silicon Valley Bank, a big name in the tech industry, went out of business last year, which cost the FDIC and the banking industry a lot of money. The failure of the bank has made people worry about the security of the financial system and the need for stricter rules to stop this from happening again.
The case that New York City filed shows how important it is to get failed banks to pay their back taxes. The city’s move shows how important it is to have a strong system to make sure that taxpayers don’t have to pay the taxes that failed banks didn’t pay.
In its role as receiver for Silicon Valley Bank, the FDIC is in charge of the bank’s assets and debts. The agency has been trying to get the bank to pay all of its debts, including the taxes it owes New York City. The city’s case is likely to make things harder for the FDIC and could make it take longer to solve the bank’s problems.
The case also makes people wonder how well the FDIC can handle the assets and debts of banks that have failed. People have said that the agency has not done enough to protect taxpayers from the risks in the banking industry and has been criticized in the past for how it dealt with failed banks.
Finally, New York City’s case against the FDIC shows how important it is to get unpaid taxes from failed banks and how strong a system needs to be to make sure that taxpayers don’t have to pay the debt themselves.
The case also makes people wonder about the FDIC’s ability to handle the assets and debts of failed banks and about the need for stricter rules to stop this from happening again.