Canadian assets of Silicon Valley Bank under permanent control

Silicon Valley Bank went bankrupt on Friday.

Canadian Superintendent of Financial Institutions Peter Routledge announced additional measures to protect creditors of the Canadian branch of Silicon Valley Bank (SVB). It is taking permanent control of its assets, according to a statement released Wednesday.

This restructuring aims to maintain the bank's operations in Canada.

The assets will be transferred to a bridge bank set up by the Federal Deposit Insurance Corporation of the States -United. I believe this approach, taken in concert with officials in the United States, serves the interests of the creditors of the [Canadian] branch, the superintendent asserted.

The release also says an Ontario Superior Court judge has issued a winding-up order on the institution, which will set in motion an orderly, court-supervised process to restructure the institution. the Canadian branch, following the creation of the Silicon Valley Bridge Bank.

Peter Routledge has taken temporary control of the assets held by SVB's Canadian branch after US regulators decided to close the Santa Clara, Calif.-based bank last week.

This bankruptcy is the result of a wave of panic among depositors, who withdrew billions of dollars due to fears surrounding the bank's finances.

The SVB's activities were mainly focused on lending for emerging technology companies. This sector, which had boomed in the early years of the COVID-19 pandemic, has slowed in recent months. Tens of thousands of tech workers have been laid off.

The SVB bankruptcy is the second largest of its kind in US history.

At the end of January, the Canadian operations of Silicon Valley Bank held assets of $855.3 million, including $415.8 million in loans and $416.5 million in deposits with from regulated financial institutions.

With information from The Canadian Press