Diane Lourdes Dick (Iowa), Silicon Valley Bank's Multibillion-Dollar Tax Battle in Bankruptcy Court, 43 Bankr. L. Letter 1 (2023):

This Article focuses on the chapter 11 restructuring of SVB Financial Group. Part I describes the tax-related disputes that have occurred or are likely to occur in the case. These disputes include, for example, whether tax refunds received by the parent on behalf of the bank and other members of the consolidated group should be held in escrow pending a determination of ownership rights, and whether and to what extent bankruptcy’s distributional rules apply to valuable tax attributes (such as net operating losses) that relate to the bank’s historical operations. Part II examines recent agency efforts to expand requirements for tax allocation agreements between banks and their affiliates, finding that the government’s proposal—and the written comments it inspired— shed new light on the tax-related skirmishes in SVB Financial Group. 

Part III concludes by summarizing new bankruptcy solutions to these conflicts, with a focus on enhancing both the safety and soundness of the banking system and the fairness and efficiency of the bankruptcy process.