SVB Financial

About SVB Financial

SVB Financial Group, the parent company of Silicon Valley Bank, filed for Chapter 11 bankruptcy on March 17, 2023, one week after regulators seized SVB. The bankruptcy was for the holding company only, not the bank subsidiary, which was under FDIC control. SVB Financial had 3.3 billion in debt. The filing was contentious, with the FDIC claiming it was owed money by SVB Financial. The bankruptcy estate sued the FDIC to recover 1.9 billion that was on deposit at the bank when it was seized. The case raised questions about the treatment of holding companies in bank failures. SVB Financial emerged from bankruptcy in 2024 after settling with the FDIC. The case illustrates how bank holding company bankruptcies can be complex and adversarial.