Silicon Valley Bank's (SVB) parent company, SVB Financial Group, has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York.
The filing will carry the former umbrella company to a court-supervised process.
- SVB Financial Group said the decision was made to preserve the value.
- California-based SVB was shut down by the state's Department of Financial Protection and Innovation on March 10.
- The Federal Deposit Insurance Corporation (FDIC) currently holds the receivership of the bank.
- According to SVB Financial, it has approximately $2.2B in liquidity, $3.3B in debt outstanding, and $3.7B of preferred equity.
- SVB
Financial's other businesses, such as the investment manager SVB
Capital and the brokerage firm SVB securities, will be excluded from the
bankruptcy process and continue to operate while the company is exploring strategic alternatives.
- The sale of SVB assets led by the FDIC will also be held separate from the bankruptcy process to repay depositors.
- March
saw the consecutive collapses of three crypto-friendly banks,
Silvergate Bank, SVB, and Signature Bank, within just a week.
- SVB, previously the 16th largest bank in the U.S., provided banking services to several crypto and tech startups.
- The 40-year-old bank's collapse marked the second-largest bank failure in U.S. history, trailing only Washington Mutual in 2008.
