Important breaking news! The parent company of Silicon Valley Bank has filed for Chapter 11 bankruptcy protection after the bank collapsed last week. This was the second largest bank failure in US history, and now regulators have ensured that all deposits are protected. Thankfully, Treasury Secretary Janet Yellen, Federal Reserve Chair Jerome Powell, and FDIC Chairman Martin Gruenberg have assured the public that “no losses” will be incurred by taxpayers due to the collapse of Silicon Valley Bank.
In their press release, SVB Financial Group said they plan to use the court-supervised process to evaluate strategic alternatives for SVB Capital, SVB Securities, and other assets and investments. The company has liquidity of around $2.2 billion and has excluded their securities subsidiary and venture capital unit from the Chapter 11 filing.
The FDIC will be handling the auction of Silicon Valley Bank, and regulators have guaranteed that all deposits will be insured beyond the $250,000 threshold. The banking system is said to remain on a solid foundation and has better safeguards in place than before, ensuring that the public’s money is protected.