SVB Financial Group on Friday announced it had filed for Chapter 11 bankruptcy in a federal court in New York in the aftermath of the collapse of its former unit, Silicon Valley Bank. California regulators took control of Silicon Valley Bank last week after depositors started pulling their cash en masse, with the Federal Reserve intervening to guarantee deposits. The bank’s parent company, SVB Financial Group, says its investment banking and lending units—respectively called SVB Securities and SVB Capital—are not part of the Chapter 11 filing but that it will “use the court-supervised process to evaluate strategic alternatives for SVB Capital, SVB Securities and the Company’s other assets and investments.” The failure of Silicon Valley Bank sparked a crisis of confidence in the U.S. banking system and brought havoc to regional and international bank stocks.
