SVB Financial Group Files For Chapter 11
SVB Financial Group (SIVB.O), parent company of Silicon Valley Bank, said it filed for a court-supervised reorganization under Chapter 11 bankruptcy protection to seek buyers for its assets, days after its former unit Silicon Valley Bank was taken over by U.S. regulators.
- The move to commence bankruptcy proceedings comes as emergency measures to shore up confidence have so far failed to dispel worries about a financial contagion.
- Financial stocks have lost over billions of dollars in value since the collapse of Silicon Valley Bank and Signature Bank (SBNY.O) last week, while credit stress has worsened for Wall Street's biggest banks.
- Californian regulators shuttered Silicon Valley Bank last Friday and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver, making it the largest collapse since Washington Mutual went bust during the financial crisis of 2008.