The parent company of Silicon Valley Bank, SVB Financial Group, has filed for Chapter 11 bankruptcy protection following the sudden collapse of the tech-focused bank. The move sets off fears of wider problems in the global banking system. Much of SVB Financial Group is now under the control of banking regulators, with the bank having been seized last week by the federal government. In other news, a class action lawsuit has been filed against the bank, its CEO, and CFO, claiming that the company did not disclose the risks of future interest rate increases on its business. SVB Financial Group is no longer affiliated with Silicon Valley Bank after being taken over by the Federal Deposit Insurance Corporation. The bankruptcy filing creates a legal battle over the bank’s remaining assets between the creditors of the holding company and regulators. SVB Financial Group said it has approximately $2.2 billion of liquidity and valuable securities and assets that are being considered for sale. The company’s venture capital and private credit fund, SVB Capital, and regulated broker-dealer, SVB Securities, continue to operate and have sources of funding.

Leave a Reply

Your email address will not be published. Required fields are marked *