Silicon Valley Bank’s parent company filed for bankruptcy, SVB shut down last week money moguls

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USA shut down SVB last week

New Delhi. SVB Financial Group, the parent company of Silicon Valley Bank, has filed for bankruptcy protection under Chapter 11 of US law. This means that SVB Financial Group has declared bankruptcy. The move comes days after the US regulator acquired Silicon Valley Bank.

Significantly, the United States had closed Silicon Valley Bank last week. The lawsuit was filed this week against SVB Financial Group, its chief executive officer (CEO) and its chief financial officer (CFO). In this, it was alleged that the company did not report the risks, so its business could be affected if the interest rate increases in the future.

SVB Financial Group is no longer affiliated with Silicon Valley Bank following the seizure action by the Federal Deposit Insurance Corporation. The bank’s successor, Silicon Valley Bridge Bank, is governed by the FDIC and is not involved in the Chapter 11 bankruptcy protection filing. SVB Financial Group says it has about $2.2 billion in cash.

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