Courts, Finance

SVB Financial Group Is Moving On To The Bankruptcy Phase Of Regretting Causing Its Own Bank Run

This better not impact Runescape gold exchange rates. Baby needs his Tbow.

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bankruptcyrestructuringAs you likely know by now, Silicon Valley Bank found itself in a pot of trouble after suffering a massive bank run. If you are like me, you’ve recently found out that bank runs can happen when users of a bank go and withdraw their money en masse. I knew it was a thing, I just didn’t know there was a fancy term for “Oh shit, let me go get my money!” We just called those Tuesdays growing up. Anyway — they are filing for bankruptcy. Reuters has the details:

SVB Financial Group (SIVB.O) said on Friday 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.

The move to commence bankruptcy proceedings comes as emergency measures to shore up confidence have so far failed to dispel worries about a financial contagion.

If globalization has taught us anything, it is that events in one place can have butterfly effects across the globe. People have understandably been concerned with SVB going under. Banks aren’t the only ones being hit by the effects.

It is kind of refreshing to write about an actual bankruptcy and not some filthy rich company using it as a way to circumvent civil liability. We will keep you up to date on the details as the story develops. Know anything we should? Give us a heads-up at tips@abovethelaw.com.

SVB Financial Seeks Bankruptcy Protection As Banking Turmoil Persists [Reuters]

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Chris Williams became a social media manager and assistant editor for Above the Law in June 2021. Prior to joining the staff, he moonlighted as a minor Memelord™ in the Facebook group Law School Memes for Edgy T14s.  He endured Missouri long enough to graduate from Washington University in St. Louis School of Law. He is a former boatbuilder who cannot swim, a published author on critical race theory, philosophy, and humor, and has a love for cycling that occasionally annoys his peers. You can reach him by email at cwilliams@abovethelaw.com and by tweet at @WritesForRent.

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