SVB's parent company plans restructuring

SGGP 03/15/2023 06:47

SVB Financial - the parent company of Silicon Valley Bank (SVB) - announced that it is planning a strategic restructuring of its business operations at SVB Financial and its two remaining subsidiaries, SVB Capital and SVB Securities.

SVB Financial has established a five-member restructuring committee, headed by William Kosturos, previously the director in charge of restructuring the largest savings and loan bank in the United States, Washington Mutual, which collapsed during the 2008 global financial crisis.

The US Federal Reserve (FED) said it is evaluating the management of SVB Bank as well as the operating principles of SVB itself. Experts believe that the cause of SVB's collapse is largely due to the FED's sharp increase in interest rates to control inflation, which has severely affected the stock market. Some experts and leading banks believe that the FED may need to temporarily suspend its current policy to stabilize the financial market.

Meanwhile, Asian stock markets were in the red in the first trading session on March 14, as many investors sold off shares of US banks due to concerns that the consecutive collapse of SVB and Signature Bank would cause a "domino effect".

Source: https://www.sggp.org.vn/cong-ty-me-cua-svb-len-ke-hoach-tai-co-cau-post682030.html