Silicon Valley Bank's Parent Company Files for Bankruptcy
TL;DR Silicon Valley Bank's parent company SVB Financial Group (SIVB) has filed for Chapter 11 bankruptcy protection. The company said it had filed for court-supervised reorganization in the United States Bankruptcy Court for the Southern District of New York to preserve value. SVB Financial stressed that it is no longer affiliated with Silicon Valley Bank, which was shut down by regulators last week.
Silicon Valley Bank's parent company SVB Financial Group (SIVB) has filed for Chapter 11 bankruptcy protection.
The company said on Friday it had filed for court-supervised reorganization in the United States Bankruptcy Court for the Southern District of New York to preserve value.
SVB Financial stressed that it is no longer affiliated with Silicon Valley Bank, which was shut down by regulators last week sending shockwaves through the banking world.
The bank's collapse was sandwiched in between the implosions of crypto-friendly banks Silvergate (SI) and Signature Bank (SBNY). While not as focused on crypto as those two firms, Silicon Valley Bank did have some high-profile crypto clients such as stablecoin issuer Circle and blockchain-based digital settlement provider Ripple.
SVB Financial said it has around $2.2 billion in liquidity, about $3.3 billion in bond debt and $3.7 billion of preferred equity outstanding.
UPDATE (Mar. 17, 12:50 UTC): Adds additional detail on SIVB's financials and more background on collapse of Silicon Valley Bank.