Former owner of the collapsing Silicon Valley Bank (SVB), the parent company of SVB Financial Group – filed An application filed in the United States for restructuring under Section 11 of the United States Bankruptcy Code. In this respect informs Reuters with a link to the relevant document.
The company management’s decision was taken against the background of the SVB’s closure by the US Department of Financial Protection and Innovation. After that, the credit institution actually passed are under the control of the local regulatory authorities mentioned in the note.
“The reason for the decision to initiate bankruptcy proceedings is that emergency measures to build confidence (including the dismissal of top executives of the SVB, which collapsed by US President Joe Biden, promised to be sacked. – socialbites.ca) have yet to dispel fears. about financial contagion”.
SVB was forced to sell a portfolio of Treasury and mortgage securities to Goldman Sachs (GS.N) at a loss of $1.8 billion after rising yields eroded their value. To offset financial losses, bank management sent a letter to depositors and investors announcing that it had raised $2.25 billion in emergency relief in the form of common stock and preferred convertible securities.
March 17 Bloomberg agency based on data from regulator reportedAmerican banks reportedly borrowed a record $164.8 billion from the Federal Reserve System (Fed) in seven days ending on the 15th, amid the bankruptcy of Silicon Valley Bank (SVB).