SVB Financial Group

[laughs] Good morning.

May it please the court, Michelle Ognebi on behalf of the FDIC as receiver for Silicon Valley Bank and Silicon Valley Bridge Bank N.A. Um, I think that Mr. Garr made clear that we agree with SVB Financial on one point.

We think the plain language of the code controls this matter.

Um, but where we differ is that we think that, uh, the specific provision directed at set-off, Section 553, should be the, uh, the touchstone here.

It owns a cause of action to try to recover the funds.

There is a distinction there.

Um, this is money that was in the FDIC's hands, um, at the time the bank failed, and so that is, you know, our basis for keeping it in case we can set it off because we thought that we would have, um, claims against the, uh, SVB Financial.

So when I was saying, uh, to Mr. Garr the analogy to a defense to liability or to a recoupment, uh, defense, he pointed out that a ki- this kind of a setoff is about two different transactions.