SEDA Expert Scott Warman’s Testimony Credited in Silicon Valley Bank Litigation
Scott Warman, Managing Director at SEDA Experts, was extensively referenced by the U.S. District Court for the Northern District of California in SVB Financial Trust v. Federal Deposit Insurance Corporation, the litigation arising from the collapse of Silicon Valley Bank (“SVB”). Mr. Warman testified for the FDIC as its standard-of-care expert on prudent banking practices, including asset-liability management, interest-rate risk, liquidity risk, balance-sheet management, and risk governance.
In a 206-page decision, U.S. District Judge Beth Labson Freeman repeatedly relied on Mr. Warman’s opinions. The Court highlighted his more than 30 years in banking and his prior role as Treasurer of M&T Bank, an institution it described as comparable in size to SVB during the relevant period. The Court found Mr. Warman’s testimony “highly credible.”
THE EXPERTS' ROLE
Mr. Warman addressed the central question in the dispute: what would an ordinarily prudent banker have done when confronted with the interest-rate, liquidity, and balance-sheet risk facing SVB? His testimony on the applicable standard of care was unrebutted, and the Court relied on it throughout its analysis.
The Court also expressly credited his opinions on SVB’s sustained breaches of its EVE-at-risk limits, its management of liquidity and interest-rate risk, and the prudence of transferring liquidity from the Bank to its holding company while the Bank was in financial distress. The Court gave particular weight to his assessment of reliable risk measurement, a principle he articulated at trial: “If you can’t measure the risk, you can’t take it.”
THE RESULT
Mr. Warman’s contribution to the SVB litigation demonstrates the value of bringing deep industry experience to complex financial litigation. SEDA Experts congratulates Mr. Warman on this significant engagement and on the Court’s recognition of the strength of his testimony.
EXPERT INVOLVED
Scott Warman
Scott Warman is the former Treasurer at M&T Bank with over 30 years of experience in treasury management and financial leadership. Throughout his career, he has played a critical role in strengthening financial soundness, navigating complex market environments, and implementing innovative risk and liquidity management frameworks.
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