SVB Financial Group said on Tuesday that the US Federal Deposit Insurance Corporation (FDIC) has issued a “non-disposal” to separate cash held at its former subsidiary Silicon Valley Bank, which was seized by regulators to prevent a crackdown on the national bank. We have taken appropriate action,” he said.
SVB Financial made the charges in court filings ahead of its first bankruptcy hearing in Manhattan on Tuesday afternoon. About a week after California banking regulators shut down Silicon Valley Bank on his March 10th, it is the largest U.S. bank failure since the 2008 financial crisis.
This month’s failures of the Santa Clara, Calif.-based bank and Signature Bank, another midsize U.S. bank, put bank stocks on fire as investors worried about other ticking bombs in the banking system. It caused a crash and led to the acquisition of UBS Group AG. To help 167-year-old Credit Suisse Group AG avert a greater crisis.
SVB Financial said it is exploring options, including a potential bankruptcy sale, for its venture capital and investment banking divisions that were not included in the FDIC’s acquisition of Silicon Valley Bank, but will continue to operate the business. said on Monday.
FDIC says it has put it on hold as part of its investigation
The company, a former subsidiary with about $2 billion in cash, was sued in court by an FDIC recipient blocking a wire transfer of $250 million, withdrawing $19 million from SVB Financial’s bank account, He said he tried to get his payment back to SVB. “Improper conduct” such as financial bankruptcy attorneys and financial his advisers.
The company asked U.S. bankruptcy judge Martin Glenn, who is overseeing the Chapter 11 bankruptcy process, to allow funds held at Silicon Valley Bank to be transferred to another bank.
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It’s been a harrowing few days for Silicon Valley Bank’s customers. But how will bank failures affect Canada’s tech sector?We spoke with Maria Pacella, her partner and managing partner at Pender Ventures.
However, the FDIC said in a court filing Tuesday that it has withheld all bank accounts of SVB Financial as part of an investigation into potential claims against the bank’s former parent company. The move was a legitimate and necessary part of stabilizing the bank’s operations during the transition to new management, according to court filings.
Last week, SVB Financial and two executives were sued by shareholders for covering up how rising interest rates made the Silicon Valley banking sector “particularly vulnerable” to bank crackdowns.
SVB Financial did not immediately respond to a request for comment.
SVB Financial has $3.4 billion in debt and manages about $9.5 billion of other investors’ money across its portfolio of venture capital and credit funds, according to court filings. Silicon Valley Bank is SVB Financial’s largest asset, accounting for over $15.5 billion of SVB Financial’s total assets of $19.7 billion.
