BUSINESS + ECONOMY

Parent of Silicon Valley Bank seeks bankruptcy protection

Mar 17, 2023, 6:41 AM | Updated: 6:58 am

File - Customers stand in a queue outside a branch of the Northern Rock, the British mortgage lender, in Harrow, London, on Monday Sept. 17, 2007. Shares of Northern Rock were hit by a liquidity crisis which sent customers lining up to withdraw deposits. The recent failure of the Silicon Valley Bank was unlike a traditional bank run. It involved Twitter, internet memes and message boards and happened at unprecedented speed. (AP Photo/ Max Nash, File)
Credit: ASSOCIATED PRESS

(AP Photo/ Max Nash, File)

BY ASSOCIATED PRESS
Digital Content Producer

NEW YORK (AP) — The parent of Silicon Valley Bank, seized last week by the U.S., is filing for Chapter 11 bankruptcy protection.

SVB Financial Group, along with its CEO and its chief financial officer, were targeted this week in a class action lawsuit that claims the company didn’t disclose the risks that future interest rate increases would have on its business.

SVB Financial Group is no longer affiliated with Silicon Valley Bank after its seizure by the Federal Deposit Insurance Corp.

The bank’s successor, Silicon Valley Bridge Bank, is being run under the jurisdiction of the FDIC and is not included in the Chapter 11 filing.

SVB Financial Group believes it has approximately $2.2 billion of liquidity.

Keep reading: Utah leaders react to Silicon Valley Bank collapse

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