A U.S. federal judge has ruled that the former parent company of Silicon Valley Bank has no right to claim the $1.7 billion it held with the bank when the FDIC seized control of the failed institution and safeguarded other depositors' funds. District Judge Beth Labson Freeman of the U.S. District Court for the Northern District of California issued the decision on Friday, determining that while the SVB Financial Trust assumed the company's claims after the holding company entered bankruptcy proceedings, the trust cannot recover the cash because the former parent company's own executives made decisions that directly led to the bank's failure. The court sided with the FDIC's position that the misconduct of the bank's senior officers was a significant factor contributing to the institution's losses, and that the trust must bear responsibility for their negligence.