(Reuters) – SVB Financial Group said on Friday it had sought Chapter 11 bankruptcy protection to find buyers for its assets after California-based Silicon Valley Bank collapsed.
The latter, which specializes in financing technology companies, was taken over a week ago by federal regulators after a sudden drop that shook financial markets.
Faced with massive withdrawals from its customers, Silicon Valley Bank had to sell a bond portfolio whose value fell with the rise in Federal Reserve rates, which caused it to lose $1.8 billion.
The opening of bankruptcy proceedings comes days after regulators and politicians adopted emergency measures to restore confidence in the banking sector.
But doubts remain, especially since another actor has been talking about him for the past 24 hours. Swept away by the SVB and Signature debacle, First Republic Bank has seen its stock price plummet 70% since March 8, prompting major Wall Street banks to raise $30 billion in funds to try to save this regional bank .
SVB Financial Group had announced on Monday that it was considering exploring strategic options for its businesses, including SVB Capital and SVB Securities, two assets that are not included in its “Chapter 11” recourse.
The troubled bank said it would continue the process of evaluating alternatives for its venture capital business SVB Capital, SVB Securities and the company’s other assets and investments.
It said it has about $2.2 billion in cash and added that its assets, as of the end of 2022, were $209 billion.
(Mehnaz Yasmin in Bangalore, French version Laetitia Volga, edited by Jean-Stéphane Brosse)
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