BANKING COLLAPSE: Another Financial Firm Files For BANKRUPTCY

Ray Dalio recently issued this stark warning on the Silicon Valley Bank collapse, likening the meltdown to a “canary in the coal mine.”

In other words, the initial collapses of Silicon Valley Bank and Signature Bank were simply the first dominos to fall and the worst likely hasn’t happened yet.

We recently saw Meta lay off an additional 11,000 workers, though the company claims that the cuts were brought on by a shifting core focus for the social media giant—the tech sector is hurting.

On Friday, another major financial firm filed for Chapter 11 bankruptcy protection—SVB’s parent company, the Silicon Valley Bank Financial Group.

SVB Financial Group has become the latest to go under due to credit contraction and the lack of easy money—will the next one be Credit Suisse?

Here are the latest developments:

SVB Financial Group, Silicon Valley Bank's former parent company, filed for chapter 11 bankruptcy protection on Friday.

— DailyNoah.com (@DailyNoahNews) March 17, 2023

1. The former parent company of Silicon Valley Bank filed for bankruptcy protection on Friday, a week after the tech-reliant bank was taken over by US regulators.

In a statement, SVB Financial Group said it is also no longer affiliated with Silicon Valley Bank. https://t.co/2tvLTeF2W5 pic.twitter.com/IQNxUHOxsM

— BFM News (@NewsBFM) March 18, 2023

According to The Epoch Times:

The aim of filing for bankruptcy protection is to “preserve value” as it seeks buyers for its assets, SVB Financial Group said.

“The Chapter 11 process will allow SVB Financial Group to preserve value as it evaluates strategic alternatives for its prized businesses and assets, especially SVB Capital and SVB Securities,” William Kosturos, Chief Restructuring Officer for SVB Financial Group, said in a statement.

SVB Financial Group said it has about $2.2 billion of liquidity and other assets for which it’s “exploring strategic alternatives,” understood to mean some type of acquisition.

NATIONAL POLL: Do You Trust Fox News?

 

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SVB Financial Group (SIVB) -80%. First Republic Bank (FRC) -72%.

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ProCoin News reports:

So far, it is clear that there is some funding strains among the banks and this is proven by the fact that the Federal Reserve has recently lend around $165 billion to many banks in just the span of a week.

Whether or not this will impact the Fed’s mission to combat inflation is still unknown as it is unclear if this liquidity is being created by increasing the money supply or through other means.