SVB Financial, the former parent of Silicon Valley Bank, said it filed for bankruptcy, a week after the tech-reliant bank was shut down by regulators following a run on the financial institution that drove it into insolvency.
In a Friday statement, SVB Financial said it is no longer affiliated with Silicon Valley Bank or its private banking and wealth management unit, SVB Private, following its takeover by the Federal Deposit Insurance Corporation. Silicon Valley Bank isn’t included in the Chapter 11 filing, the company said.
The bankruptcy filing also doesn’t include SVB Securities and SVB Capital’s funds as well as its general partner entities, the statement noted. The parent company said it is continuing to search for “strategic alternatives” for those divisions, which continue to operate and undertake business for customers.
“The Chapter 11 process will allow SVB Financial Group to preserve value as it evaluates strategic alternatives for its prized businesses and assets, especially SVB Capital and SVB Securities,” said William Kosturos, chief restructuring officer for SVB Financial Group, in the statement.
Thanks for reading CBS NEWS.
Create your free account or log in
for more features.
