New York/Santa Clara (USA) – American company SVB Financial Group, which is the parent the company of the bankrupt financial institution Silicon Valley Bank (SVB), declared bankruptcy. The company said this in documents to a court in New York, where it sought protection from creditors. He will now begin reorganization under court supervision.
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The bankruptcy comes shortly after the firm said on March 13 that it would assess strategic alternatives for its business. The assets of SVB Securities and SVB Capital are not included in the bankruptcy protection regime.
American authorities closed SVB last week. Over the weekend, they also took control of the Signature Bank financial institution, which raised concerns on the financial markets about the future development of the banking sector.
SVB lent money mainly to start-up technology companies, so-called start-ups. It calculated the value of assets and liabilities at up to ten billion dollars, liquidity at roughly USD 2.2 billion (almost CZK 50 billion). At the end of last year, it had assets worth $209 billion.
Shares of major US banks were down over one percent before the start of today's trading in New York. Regional banks including PacWest Bancorp and First Republic Bank reported declines of ten to 20 percent.
