JUST IN: SVB Financial Group Files for Chapter 11 Bankruptcy
Silicon Valley Bank’s former parent company SVB Financial Group filed for chapter 11 bankruptcy protection on Friday.
Last Friday Silicon Valley Bank went into FDIC receivership after it was unable to produce cash for its depositors.
The Biden Regime bailed out SVC depositors over the $250,000 FDIC insured threshold.
The Treasury and FDIC announced that all depositors of Silicon Valley Bank will have access to their money.
The chapter 11 bankruptcy will allow SVB Financial Group to sell assets.
According to reports, SVB Financial Group has $2.2 billion of liquidity and other assets.
The parent of Silicon Valley Bank filed for Chapter 11 bankruptcy a week after the tech-focused bank failed and was seized by the U.S. government.
The filing from SVB Financial Group on Friday is not a surprise, with much of the company now under the control of U.S. banking regulators. During the 2008 financial crisis, the parent companies of failed banks Washington Mutual and IndyMac — filed for bankruptcy protection in the days after their banking operations failed.
Also, Silicon Valley Bank along with its CEO and its chief financial officer were targeted this week in a class action lawsuit that claims the company didn’t disclose the risks that future interest rate increases would have on its business.
SVB Financial Group is no longer affiliated with Silicon Valley Bank after its seizure by the Federal Deposit Insurance Corporation. The bank’s successor, Silicon Valley Bridge Bank, is being run under the jurisdiction of the FDIC and is not included in the Chapter 11 filing.
Silicon Valley Bank was hit with its first securities lawsuit on Monday.
Shareholders filed a class action lawsuit against SVB on Monday arguing they were never warned about the risks to its business model, Bloomberg reported.