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close video Silicon Valley Bank victim Naveen Jain speaks out on chaotic bank failure

Viome founder and CEO Naveen Jain discusses how his business had $25 million stored in Silicon Valley Bank on ‘Mornings with Maria.’

Silicon Valley Bank's parent company SVB Financial Group has filed for Chapter 11 bankruptcy protection in a New York court after the bank collapsed last week, upending the world of tech startups.

The company said in a statement that SVB Securities and SVB Capital's funds and general partner entities are not included in the Chapter 11 filing and continue to operate in the ordinary course as the company explores "strategic alternatives" for these businesses.

SVB Capital is the failed bank's venture capital arm that manages $9.5 billion with large investments in top Silicon Valley firms including Sequoia Capital, Andreessen Horowitz, and Ribbit Capital, according to documents reported by The Information. SVB Securities is an investment bank that specializes in health care and technology.  Ticker Security Last Change Change % SIVB SVB FINANCIAL GROUP 106.04 -161.79 -60.41%

Silicon Valley Bank, N.A., the new entity created by the Federal Deposit Insurance Corporation (FDIC) after SVB's collapse, is no longer affiliated with SVB Financial Group and is not included in the Chapter 11 filing. 

HOW FIRST REPUBLIC RESCUE, SILICON VALLEY BANK COULD COST MAIN STREET AMERICA

The Silicon Valley Bank (SVB) logo is seen through a rain covered window in front of the SVB headquarters on March 10, 2023, in Santa Clara, California. Silicon Valley Bank was shut down on March 10 by California regulators and was put in control of (Justin Sullivan/Getty Images / Getty Images)

The filing was made with the U.S. Bankruptcy Court for the Southern District of New York.

SVB Financial Group said it has approximately $2.2 billion of liquidity at time of filing. Its funded debt is approximately $3.3 billion in aggregate principal amount of unsecured notes, and the company also has $3.7 billion of preferred equity outstanding. 

"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," said William Kosturos, Chief Restructuring Officer for SVB Financial Group. "SVB Capital and SVB Securities continue to operate and serve clients, led by their longstanding and independent leadership teams."

PETER THIEL SAYS HE HAD $50M IN SILICON VALLEY BANK WHEN IT SHUT DOWN

An employee checks his phone after arriving to work to a shuttered Silicon Valley Bank (SVB) headquarters on March 10, 2023, in Santa Clara, California. Prior to being shut down by regulators, shares of SVB were halted on March 10 after falling more (Justin Sullivan/Getty Images / Getty Images)

"SVB Financial Group will continue to work cooperatively with Silicon Valley Bridge Bank," Kosturos continued. "We are committed to finding practical solutions to maximize the recoverable value for stakeholders of both entities."

Silicon Valley Bank, which mainly serviced tech startups and was the nation's 16th largest bank when it was shut down on March 10 by California regulators. The FDIC took over the bank's operations following a liquidity crisis as depositors rushed to withdraw their money amid a panic over the bank's health. It was the second-largest bank failure in United States history and the largest since Washington Mutual went under in 2008. 

CCP-LINKED SILICON VALLEY BANK DEPOSITERS COULD BE ‘MADE WHOLE’ BY US: YELLEN

The FDIC announced a plan on Sunday to ensure that Silicon Valley Bank depositors would be able to access the full amount of their money. (AP Photo/Peter Morgan / AP Newsroom)

Days before its collapse, SVB disclosed huge losses which sent its stock price cratering 60%. The vast majority of SVB's customers had deposits in excess of the FDIC's $250,000 protection threshold, which led to fears hundreds of startup companies might lose access to their money and be unable to make payroll.

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The Treasury Department, the Federal Reserve, and the FDIC announced a plan on Sunday to ensure that SVB customers would be able to access all of their funds — even beyond the $250,000 limit. Critics have called the move a "bailout," but government officials have disputed that characterization, and financial analysts have noted that depositors, not SVB itself, are the ones benefiting from the government's action. 

FOX Business' Breck Dumas contributed to this report.

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UK content creators demand formal recognition from the government

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UK content creators demand formal recognition from the government

The UK’s YouTubers, TikTok creators and Instagram influencers have been surveyed en masse for the first time ever, and are demanding formal recognition from the government.

The creator economy in the UK is thought to employ around 45,000 people and contribute over £2bn to the country in one year alone, according to the new research by YouTube and Public First.

But, despite all that value, its workers say they feel underappreciated by the authorities.

Max Klyemenko, famous for his Career Ladder videos, wants the government to take creators like himself more seriously. Pic: Youtube
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Max Klyemenko, famous for his Career Ladder videos, wants the government to take creators like himself more seriously. Pic: Youtube

“If you look at the viewership, our channel is not too different from a big media company,” said Max Klymenko, a content creator with more than 10 million subscribers and half a billion monthly views on average.

“If you look at the relevancy, especially among young audiences, I will say that we are more relevant. That said, we don’t really get the same treatment,” he told Sky News.

Fifty-six per cent of the more than 10,000 creators surveyed said they do not think UK creators have a “voice in shaping government policies” that affect them.

Only 7% think they get enough support to access finance, while just 17% think there is enough training and skills development here in the UK.

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Nearly half think their value is not recognised by the broader creative industry.

The creative industries minister, Sir Chris Bryant, said the government “firmly recognises the integral role that creators play” in the UK’s creative industries and the fact that they help “to drive billions into the economy” and support more than 45,000 jobs.

“We understand more can be done to help creators reach their full potential, which is why we are backing them through our new Creative Industries Sector Plan,” he said.

Ben Woods said the government needs to "broaden its lens" to include creators
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Ben Woods said the government needs to “broaden its lens” to include creators

“The UK has got a fantastic history of supporting the creative industries,” said Ben Woods, a creator economy analyst, Midia Research who was not involved in the report.

“Whether you look at the film side, lots of blockbuster films are being shot here, or television, which is making waves on the global stage.

“But perhaps the government needs to broaden that lens a little bit to look at just what’s going on within the creator economy as well, because it is highly valuable, it’s where younger audiences are spending a lot of their time and [the UK is] really good at it.”

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According to YouTube, formal recognition would mean creators are factored into official economic impact data reporting, are represented on government creative bodies, and receive creator-specific guidance from HMRC on taxes and finances.

For some, financial guidance and clarity would be invaluable; the ‘creator’ job title seems to cause problems when applying for mortgages or bank loans.

Podcaster David Brown owns a recording studio for creators
Image:
Podcaster David Brown owns a recording studio for creators

“It’s really difficult as a freelancer to get things like mortgages and bank accounts and credit and those types of things,” said podcaster David Brown, who owns a recording studio for creators.

“A lot of people make very good money doing it,” he told Sky News.

“They’re very well supported. They have a lot of cash flow, and they are successful at doing that job. It’s just the way society and banking and everything is set up. It makes it really difficult.”

The creative industries minister said he is committed to appointing a creative freelance champion and increasing support from the British Business Bank in order to “help creators thrive and drive even more growth in the sector”.

The government has already pledged to boost the UK’s creative industries, launching a plan to make the UK the number one destination for creative investment and promising an extra £14bn to the sector by 2035.

These influencers want to make sure they are recognised as part of that.

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Astros’ Alvarez to see hand specialist after setback

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Astros' Alvarez to see hand specialist after setback

DENVER — Houston Astros slugger Yordan Alvarez has experienced a setback in his recovery from a broken right hand and will see a specialist.

Astros general manager Dana Brown said Alvarez felt pain when he arrived Tuesday at the team’s spring training complex in West Palm Beach, Florida, where he had a workout a day earlier. Alvarez also took batting practice Saturday at Daikin Park.

He will be shut down until he’s evaluated by the specialist.

“It’s a tough time going through this with Yordan, but I know that he’s still feeling pain and the soreness in his hand,” Brown said before Tuesday night’s series opener at Colorado, which the Astros won 6-5. “We’re not going to try to push it or force him through anything. We’re just going to allow him to heal and get a little bit more answers as to what steps we take next.”

Alvarez has been sidelined for nearly two months. The injury was initially diagnosed as a muscle strain, but when Alvarez felt pain again while hitting in late May, imaging revealed a small fracture.

The 28-year-old outfielder, who has hit 31 homers or more in each of the past four seasons, had been eyeing a return as soon as this weekend at the Los Angeles Dodgers. Now it’s uncertain when he’ll play.

“We felt like he was close because he had felt so good of late,” Brown said, “but this is certainly news that we didn’t want.”

Also Tuesday, the Astros officially placed shortstop Jeremy Peña on the 10-day injured list with a fractured rib and recalled infielder Shay Whitcomb from Triple-A Sugar Land.

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Springer’s 7 RBIs help Jays pile on Yankees late

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Springer's 7 RBIs help Jays pile on Yankees late

George Springer had a career-high seven RBIs, including his ninth grand slam, and the Toronto Blue Jays celebrated Canada Day by beating the Yankees 12-5 on Tuesday and closing within one game of American League East-leading New York.

The seven RBIs are tied for the second most by any Blue Jays player in a home game, behind Edwin Encarnación (nine RBIs in 2015), according to ESPN Research.

Andrés Giménez had a go-ahead, three-run homer for the Blue Jays, who overcame a 2-0 deficit against Max Fried. After the Yankees tied the score 4-4 in the seventh, Toronto broke open the game in the bottom half against a reeling Yankees bullpen.

Springer went 3-for-4, starting the comeback with a solo homer in the fourth against Fried and boosting the lead to 9-5 with the slam off Luke Weaver after Ernie Clement‘s go-ahead single off shortstop Anthony Volpe‘s glove. Springer has 13 homers this season.

Toronto won the first two games of the four-game series and closed within one game of the Yankees for the first time since before play on April 20.

New York went 2-for-17 with runners in scoring position, dropping to 3-for-24 in the series, while the Blue Jays were 5-for-7. After going 13-14 in June, the Yankees fell to 10-14 against AL East rivals.

The Associate Press contributed to this report.

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