Norway's sovereign fund secures $224.5 million from KPMG over SVB collapse

what happened

Norges Bank Investment Management, which manages Norway's $2.3 trillion sovereign wealth fund, said it reached a settlement in principle of $224.5 million with KPMG LLP. The class action was co-led with Swedish pension fund Sjunde AP-fonden and was reached on behalf of investors. The case stems from the collapse of Silicon Valley Bank in March 2023, which followed a $42 billion bank run and led regulators to step in and close the lender.

NBIM previously said investors suffered heavy losses because of misrepresentations about SVB's financial condition and risk management by its former executives, directors, financial advisers and outside auditor. KPMG said the settlement was not an admission of wrongdoing. The deal is subject to court approval, and the case against the other defendants continues, the fund said, according to Dow Jones and Update reporting.

why it matters

For markets, the deal matters mainly as one of the larger outcomes from the SVB failure. The amount is small relative to the fund's assets, but it shows that recovery efforts for investors are moving forward while claims against other defendants remain open.

market impact

Audit firms: a possible precedent for settling claims after bank failures

tags

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