The parent company of Silicon Valley Bank, seized last week by the US federal government, filed for federal bankruptcy protection.
SVB Financial Group, together with its CEO and CFO, were the subject of a class action lawsuit alleging that the company failed to disclose the risks that future interest rate increases posed to its business.
SVB Financial Group is no longer affiliated with Silicon Valley Bank after intervention by the Federal Deposit Insurance Corporation (FDIC, an independent federal agency that guarantees depositors that they will get their savings back if a bank fails). .
The bank’s successor, Silicon Valley Bridge Bank, is being run under the jurisdiction of the FDIC and is not included in the bankruptcy protection order.
SVB Financial Group believes it has liquidity of $2.2 billion.
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