SVB Parent Seeks , Bankruptcy Protection.
NBC News reports that SVB Financial Group, its CEO and CFO were named in a class action lawsuit this week.
The suit claims that Silicon Valley Bank's (SVB) parent company didn't reveal the potential risks that interest rate increases might have on its business.
SVB Financial Group has since filed for Chapter 11 bankruptcy protection and isn't associated with SVB anymore following the bank's demise.
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, William Kosturos, Chief Restructuring Officer for SVB Financial Group, via statement.
SVB Securities and SVB Capital are not included in filing.
There is no claim against those two companies and they will continue to operate normally.
According to SVB Financial Group, the company has about $2.2 billion in liquidity.
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Two days after SVB shuttered, Signature Bank collapsed as well.
Two days after SVB shuttered, Signature Bank collapsed as well.
In an attempt to restore the public's faith in the banking system, the U.S. government has pledged to protect all deposits, even if they exceed $250,000.
In an attempt to restore the public's faith in the banking system, the U.S. government has pledged to protect all deposits, even if they exceed $250,000
