In Re: SVB Fin. Grp.

Summary

The Second Circuit affirmed the bankruptcy court’s order, holding that the FDIC’s defensive setoff rights asserted in a California lawsuit are not “claims” under 11 U.S.C. § 101(5)(A) and therefore the FDIC was not required to file a proof of claim in the Chapter 11 case. The court based its decision on the definition of a claim, the nature of defensive setoff under California law, and prior precedent.