Silicon Valley Bank's parent organization SVB Financial Group filed for bankruptcy today.
The Chapter 11 bankruptcy
protection only affects the parent, not its subsidiaries SVB Capital
and SVB Securities or the Silicon Valley Bridge Bank, which is under the
control of the FDIC.
- SVB Financial reportedly has $2.2B in liquidity.
- Chief
restructuring officer William Kosturos said, "The Chapter 11 process
will allow SVB Financial Group to preserve value as it evaluates
strategic alternatives for its prized businesses and assets, especially
SVB Capital and SVB Securities."
- With the bankruptcy filing, SVB Financial is now free to resume operations and actively look for a buyer.
- The bridge bank will continue to run independently of the parent SVB Financial.
- The bank's venture capital division SVB Capital reportedly had over $9.5B in assets under management (AUM).
