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Thursday, March 23, 2023

Is SVB Financial going bankrupt in current financial crisis?

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The funds and general partner entities of SVB Securities and SVB Capital are not listed in the Chapter 11 petition.

SVB Financial Group said on Friday that it has filed for a court-supervised restructuring under Chapter 11 bankruptcy protection in order to find purchasers for its assets, only days after its former subsidiary Silicon Valley Bank was taken over by US regulators.

The filing for bankruptcy comes after the firm announced on March 13 that it was looking at strategic alternatives for its companies, including the holding company, SVB Capital, and SVB Securities.

The funds and general partner companies of SVB Securities and SVB Capital are not included in the Chapter 11 filing, the business stated on Friday.

On Wednesday, it was reported that the parent firm was considering filing for bankruptcy in order to sell assets.

SVB was closed down by California banking authorities on Friday and the Federal Deposit Insurance Corporation was appointed as receiver for later disposal of its assets.

The failure of SVB, the largest bank to fall since Washington Mutual went bankrupt during the 2008 financial crisis, has crushed bank stocks and raised fears of a worldwide market meltdown.

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