Silicon Valley Bank parent company files for bankruptcy

Silicon Valley Bank’s parent company, SVB Financial Group, is considering filing for bankruptcy. This was announced on Wednesday, March 15, by the agency Reuters¬†with reference to sources.

SVB Financial Group, a company whose former Silicon Valley Bank subsidiary was taken over by US banking regulators last week, is considering bankruptcy protection as an asset sale option.

The source of the agency notes that filing for bankruptcy is just one of the options that SVB is considering. The company is also exploring other restructuring and recapitalization alternatives based on its investment bank and venture business. In addition to looking for direct buyers of assets, companies in such situations sometimes try to find investors to invest in the enterprise.

Earlier, on March 13, US President Joe Biden tried to convince American citizens that they could be confident in the security of the country’s banking system. He vowed to ask Congress and “banking regulators to tighten rules on banks and reduce the risk of this kind of bank failure happening again” and to protect jobs and small businesses in the country.

The US bankruptcy of Silicon Valley Bank became known on March 11. The organization went bankrupt in less than two days. After the bank made an unsuccessful operation with securities, depositors began to withdraw funds sharply from their accounts. As noted by Reuters, the bankruptcy of such a large credit institution was the first since the 2008 financial crisis.

In turn, Kremlin spokesman Dmitry Peskov said that the bankruptcy of American credit institutions would not have an impact on the Russian banking system.

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