SVB Financial Group has on Friday filed for Chapter 11 bankruptcy protection in order to reorganize and find potential buyers for its assets.
This decision comes after its former subsidiary, Silicon Valley Bank, was recently taken over by US regulators.
Reuters reported that the company had announced its plans to explore strategic alternatives for its businesses, including its holding company, SVB Capital, and SVB Securities prior to filing for bankruptcy.
Meanwhile, SVB Securities and SVB Capital’s funds and general partner entities will not be affected by the Chapter 11 filing, as per the company’s statement on Friday.
According to a report by Reuters on Wednesday, the parent company had been considering bankruptcy protection as an option to sell its assets.
California banking regulators have shut down SVB and appointed the Federal Deposit Insurance Corporation as the receiver of its assets for future disposition.
SVB’s collapse is the largest bank failure since Washington Mutual’s during the 2008 financial crisis. This event has negatively affected bank stocks and has caused concerns of potential contagion in global markets.