Silicon Valley Bank’s Parent Company Files for Bankruptcy

Business|Parent Company of Silicon Valley Bank Files for Bankruptcy

SVB Financial Group, the genitor institution of Silicon Valley Bank, the lender that was seized by regulators past week aft a devastating tally connected deposits, filed for bankruptcy connected Friday.

The determination would spot SVB Financial, which owns different businesses speech from Silicon Valley Bank, into a court-led process, arsenic it auctions disconnected units that see the concern manager SVB Capital and the brokerage steadfast SVB securities. Those units proceed to run and were not portion of the bankruptcy filing.

The bankruptcy process would beryllium abstracted from the merchantability of assets led by the Federal Deposit Insurance Corporation to repay Silicon Valley Bank’s depositors. SVB Financial said successful a connection that it “believes it has astir $2.2 cardinal of liquidity.” The institution had astir $3.3 cardinal successful indebtedness outstanding and a benignant of shares worthy $3.7 billion.

The F.D.I.C. took implicit Silicon Valley Bank, a 40-year-old lender based successful Santa Clara, Calif., past Friday. The nation’s 16th largest bank, Silicon Valley Bank was 1 of the astir salient lenders successful the satellite of exertion start-ups. Its nonaccomplishment is the second-largest successful U.S. history, and the largest since the fiscal situation of 2008. The F.D.I.C has had trouble uncovering a purchaser for the bank.