Silicon Valley Bank Parent Company Files for Bankruptcy
- SVB Financial Group (SIVB), the former parent company of Silicon Valley Bank, has filed for Chapter 11 bankruptcy protection in the U.S.
- The bank had some crypto customers, including Circle Internet Financial and Ripple.
- SVB Financial stressed that it is no longer affiliated with Silicon Valley Bank, which was shut down by regulators last week.
Silicon Valley Bank (SVB) was shut down by regulators last week, sending shock waves through the banking world. SVB Financial Group (SIVB), the former parent company of SVB, has now filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York. The bank’s collapse was sandwiched between the implosions of crypto-focused Silvergate Bank and Signature Bank (SBNY).
While not as focused on crypto as those two firms, Silicon Valley Bank had some high-profile crypto customers such as stablecoin issuer Circle Internet Financial and blockchain-based digital settlement provider Ripple.
SVB Financial reported that it has around $2.2 billion in liquidity, about $3.3 billion in bond debt and $3.7 billion of preferred equity outstanding. The company also specified that its venture capital arm SVB Capital and broker-dealer arm SVB Securities are not included in this bankruptcy filing.