Silicon Valley Bank Financial Group, the parent company of the ill-fated Silicon Valley Bank (SVB), filed for bankruptcy in a New York court on Friday to attempt a capital restructuring, under judicial supervision, of the businesses that have been intervened by the authorities, reported The Wall Street Journal.
The US authorities intervened last Thursday SVB, but not its parent company, toAlthough the price of its shares has been paralyzed since March 9.
The move by government and regulators came after SVB, which specializes in technology start-ups, suffered a massive run on deposits after being forced to sell assets to cover liquidity needs.
The Governmentor has guaranteed all the deposits of this institution and has reopened it under a new address and under the name of Silicon Valley Bridge Bank, with the intention that you can recover your activities.
The BLS intervention unleashed a financial earthquake whose shocks reached Europewhere they put the Swiss bank Crédit Suisse in trouble.
After the SVB debacle, the authorities intervened the Signature regional bank, and on Thursday the country’s main banking corporations came to the rescue of First Republic Bank, which is among the 15 largest banks in the country and is one of the most suffering the consequences of this crisis, with an injection of 30 billion dollars.
JM
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