In a statement issued on March 17, 2023, SVB Financial said that Silicon Valley Bank and SVB Private are no longer affiliated with the parent company.
SVB Financial Group - the parent company of Silicon Valley Bank (SVB) said it has filed for bankruptcy protection in New York bankruptcy court, marking the largest bank bankruptcy since the bankruptcy of Washington Mutual this year. 2008.
The bankruptcy will help the parent company find new owners for businesses that are not yet controlled by the federal agency, and the process will be overseen by the courts.
In a statement issued on March 17, 2023, SVB Financial said that Silicon Valley Bank and SVB Private are no longer affiliated with the parent company.
Meanwhile, William Kosturos - Restructuring Director of SVB Financial said that he is working to find ways to maximize the recoverable value for SVB Financial and Silicon Valley Bridge Bank's stakeholders.
For its part, Silicon Valley Bank after reporting default was confiscated by US authorities after depositors withdrew their capital. The US Federal Reserve (Fed) intervened to ensure full payment to depositors and reassure the market. Even so, many local banks in the US were still downgraded and depositors kept withdrawing capital.
SVB is currently operating under the new name Silicon Valley Bridge Bank N.A. and is controlled by the FDIC and is not subject to Chapter 11 bankruptcy protection.
SVB Financial is a bank serving many startups and venture capital firms in Silicon Valley.
During the pandemic, these customers have collected a lot of cash, leading to an explosion in deposits at SVB. At the end of the first quarter of 2020, this bank only had a total of more than 60 billion USD in deposits, but by the end of the first quarter of 2022, the number had skyrocketed to 200 billion USD.
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In the past 5 years, the size of SVB has quadrupled. At the end of last year, the market capitalization reached more than 40 billion USD.