Stock Market News

SVB Financial seeks bankruptcy protection for reorganization

2023.03.17 08:57


© Reuters. FILE PHOTO: Silicon Valley Bank (SVB) logo is seen through broken glass in this picture illustration taken March 16, 2023. REUTERS/Dado Ruvic/Illustration

(Reuters) -SVB Financial Group said on Friday it filed for a court-supervised reorganization under Chapter 11 bankruptcy protection to seek buyers for its assets, days after its former unit Silicon Valley Bank was taken over by U.S. regulators.

The move to seek bankruptcy protection comes after the company said on March 13 it was planning to explore strategic alternatives for its businesses.

Shares of big U.S. banks fell more than 1.5% in premarket trading. Regional banks including PacWest Bancorp and First Republic Bank (NYSE:) were down between 10% and 20%.

SVB Securities and SVB Capital’s funds and general partner entities are not included in the Chapter 11 filing and the company said it planned to proceed with the process to evaluate alternatives for the businesses, as well its other assets and investments.

Reuters reported on Wednesday that the parent company was exploring seeking bankruptcy protection for selling assets.

Californian regulators shuttered Silicon Valley Bank last Friday, making it the largest collapse since Washington Mutual went bust during the financial crisis of 2008.

The collapse crippled bank stocks and triggered concerns of a contagion throughout global markets.

The tech lender was forced to sell a portfolio of treasuries and mortgage-backed securities to Goldman Sachs (NYSE:) at a $1.8 billion loss after a rise is yields eroded value. To plug that hole, it attempted to raise $2.25 billion in common equity and preferred convertible stock but spooked clients pulled deposits from the bank that led to $42 billion of outflows in a day.

The company said on Friday it has about $2.2 billion of liquidity. It had $209 billion in assets at the end of last year.

Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 82,113.00 2.30%
ethereum
Ethereum (ETH) $ 1,912.68 1.44%
tether
Tether (USDT) $ 0.999974 0.02%
xrp
XRP (XRP) $ 2.26 3.38%
bnb
BNB (BNB) $ 628.76 0.31%
solana
Solana (SOL) $ 124.65 3.47%
usd-coin
USDC (USDC) $ 1.00 0.01%
cardano
Cardano (ADA) $ 0.693408 3.61%
dogecoin
Dogecoin (DOGE) $ 0.166448 4.60%
tron
TRON (TRX) $ 0.235824 7.29%
staked-ether
Lido Staked Ether (STETH) $ 1,911.06 1.37%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 81,949.96 2.25%
leo-token
LEO Token (LEO) $ 9.74 0.56%
the-open-network
Toncoin (TON) $ 3.58 3.10%
chainlink
Chainlink (LINK) $ 13.63 3.63%
usds
USDS (USDS) $ 1.00 0.00%
stellar
Stellar (XLM) $ 0.269541 1.48%
wrapped-steth
Wrapped stETH (WSTETH) $ 2,287.86 1.54%
hedera-hashgraph
Hedera (HBAR) $ 0.185315 3.13%
pi-network
Pi Network (PI) $ 1.13 15.47%
avalanche-2
Avalanche (AVAX) $ 18.55 1.55%
shiba-inu
Shiba Inu (SHIB) $ 0.000012 4.61%
sui
Sui (SUI) $ 2.27 3.99%
mantra-dao
MANTRA (OM) $ 6.93 0.70%
polkadot
Polkadot (DOT) $ 4.42 0.06%
litecoin
Litecoin (LTC) $ 88.49 4.82%
bitcoin-cash
Bitcoin Cash (BCH) $ 334.37 1.16%
bitget-token
Bitget Token (BGB) $ 4.62 3.96%
ethena-usde
Ethena USDe (USDE) $ 0.999619 0.06%
weth
WETH (WETH) $ 1,912.26 1.42%
binance-bridged-usdt-bnb-smart-chain
Binance Bridged USDT (BNB Smart Chain) (BSC-USD) $ 1.00 0.10%
hyperliquid
Hyperliquid (HYPE) $ 13.88 3.08%
whitebit
WhiteBIT Coin (WBT) $ 28.13 1.32%
wrapped-eeth
Wrapped eETH (WEETH) $ 2,030.94 1.41%
monero
Monero (XMR) $ 207.27 1.93%
uniswap
Uniswap (UNI) $ 6.30 0.62%
susds
sUSDS (SUSDS) $ 1.04 0.10%
dai
Dai (DAI) $ 0.999847 0.01%
aptos
Aptos (APT) $ 5.29 1.65%
okb
OKB (OKB) $ 50.70 0.98%
near
NEAR Protocol (NEAR) $ 2.53 4.72%
pepe
Pepe (PEPE) $ 0.000007 6.99%
internet-computer
Internet Computer (ICP) $ 5.75 4.14%
mantle
Mantle (MNT) $ 0.806831 1.44%
gatechain-token
Gate (GT) $ 21.80 0.86%
ethereum-classic
Ethereum Classic (ETC) $ 17.45 2.98%
tokenize-xchange
Tokenize Xchange (TKX) $ 32.95 1.98%
ondo-finance
Ondo (ONDO) $ 0.822338 5.31%
aave
Aave (AAVE) $ 169.03 3.65%
coinbase-wrapped-btc
Coinbase Wrapped BTC (CBBTC) $ 82,095.00 2.40%