March 17 (Reuters) - SVB Financial Group (SIVB.O) on Friday sought protection under Chapter 11 of the U.S. bankruptcy code, days after its former unit Silicon Valley Bank was taken over by U.S. regulators.
Bank stocks globally have seen billions of dollars wiped away from their market valuation in the aftermath of the collapse, which also shook the startup community the Santa Clara, California-based bank was mainly lending to.
Below is a timeline of key events leading up to the Chapter 11 filing:
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Date
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Development
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March 8, 2023
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SVB says it intends to raise $2.25 billion in common equity and preferred convertible stock after it sold a portfolio of US Treasuries and mortgage-backed securities at a $1.8 billion loss
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March 9, 2023
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SVB clients pull their money from the bank on the advice of venture capital firms such as Peter Thiel's Founders Fund, sources tell Reuters, leading to $42 billion of deposit withdrawals on that day
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March 10, 2023
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A California regulator shuts Silicon Valley Bank and appoints the Federal Deposit Insurance Corporation (FDIC) as receiver to take control of its parent company, according to the agency's statement
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March 11, 2023
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Employees of Silicon Valley Bank offered 45 days of employment at 1.5 times their salary by the regulator FDIC, according to an email to staff seen by Reuters
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March 12, 2023
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"Depositors will have access to all of their money starting Monday, March 13," the U.S. Treasury, Federal Reserve and FDIC say in a statement, adding that no losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer read more
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March 13, 2023
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The defunct holding company says it is planning to explore strategic alternatives for its businesses and names William Kosturos as its chief restructuring officer.
President Joe Biden vows to take action to ensure the safety of the U.S. banking system. |
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March 14, 2023
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SVB says that Goldman Sachs acquired the bond portfolio on which it booked a $1.8 billion loss, a transaction that set its failure in motion.
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March 15, 2023
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Canada's financial regulator says it has taken permanent control of the assets of Silicon Valley Bank's Canadian branch and was winding up the institution.
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March 15, 2023
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Regulators at the U.S. Federal Deposit Insurance Corp (FDIC) have asked banks interested in acquiring failed lenders Silicon Valley Bank and Signature Bank to submit bids by March 17, Reuters reported.
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March 16, 2023
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U.S. Treasury Secretary Janet Yellen says that Silicon Valley Bank had to be closed because of a liquidity risk that meant the bank could not meet depositors' withdrawal requests.
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March 17, 2023
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SVB says it filed for a court-supervised reorganization under Chapter 11 bankruptcy protection to seek buyers for its assets, days after its former unit Silicon Valley Bank was taken over by U.S. regulators.
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Reporting by Mehnaz Yasmin and Priyamvada C in Bengaluru; Editing by Maju Samuel and Saumyadeb Chakrabarty
