NYC Ousts FDIC’s Tax Refund Claim From Silicon Valley Bank Case

The Federal Deposit Insurance Corporation, as receiver for failed Silicon Valley Bank, can’t pursue its claims for a New York City tax refund as part of the city’s lawsuit for $2.14 million in back taxes, a federal court in Washington ruled.

The federal Tax Injunction Act bars federal courts from exercising jurisdiction over cases like this one involving municipal tax administration, the US District Court for the District of Columbia ruled Friday. “This Court is simply not empowered to grant the FDIC receiver the municipal tax refund that it seeks,” Judge Sparkle L. Sooknanan wrote.

The city sued the FDIC ...