SVB Financial Group, the parent company of the collapsing Silicon Valley Bank, announced on Friday that it has filed for Chapter 11 bankruptcy protection to seek buyers for its assets, days after the turmoil in the financial market started with the failure of its state-chartered commercial banking unit.
The announcement comes as the U.S. government and regulators tried to shore up confidence in the banking sector earlier this week after the collapse of the Silicon Valley Bank. So far, the support did help boost some confidence in the stock market, but that did not last long until the incident of Credit Suisse shook the market in just a few days afterward.
Earlier, Goldman Sachs Group Inc announced that it had bought the bond portfolio of SVB Financial Group before the commencement of the receivership by US regulators, according to the filing from the troubling lender SVB Financial Group and was first reported by Reuters.
The acquisition of this portfolio consists mostly of U.S. Treasuries with a book value of $23.97 billion and sale fetched proceeds of $21.45 billion (resulting in an after-tax loss of approximately $1.8 billion).
SVB Securities and SVB Capital’s funds and general partner entities are not included in the Chapter 11 filing by the SVB Financial Group. It plans to proceed with the process to evaluate alternatives for the businesses, including other assets and investments.
