Silicon Valley parent bank files for bankruptcy after intervention

Silicon Valley Bank Financial Group, parent company of the ill-fated bank Silicon Valley Bank (SVB)declared bankruptcy this Friday in a court in New York, in order to try to restructure the capital of companies in which the authorities intervened under judicial supervision, the newspaper reported The Wall Street Journal.

American authorities intervened last Thursday in SVB, but not in its parent company, although the listing of its shares has been paralyzed since March 9.

The move by the government and regulators comes after SVB, which specializes in technology start-ups, suffered a huge loss of deposits after it was forced to sell assets to cover liquidity needs.

The government guaranteed all deposits of this institution and reopened it under new management and name Silicon Valley Bridge Bankwith the intention that you can resume your activities.

SVB’s intervention triggered a financial earthquake whose shocks reached Europe, where they put the Swiss bank in trouble Credit Suisse.

After the SVB debacle, the authorities also intervened in the regional bank signature and yesterday the main banking corporations in the country attended Rescue of First Republic Bankwhich is among the 15 largest banks in the country and is one of those suffering the most from the consequences of this crisis, with an injection of 30,000 million dollars.