Embattled SVB Financial Group seeks protection from bankruptcy: Report

This comes just a few days after US regulators took over its former subsidiary, Silicon Valley Bank.

The decision to commence bankruptcy proceedings was made as emergency measures to boost invester confidence amid SVB's collapse have been unsuccessful.

Last Friday, regulators in California shut down Silicon Valley Bank, marking the biggest collapse since Washington Mutual's bankruptcy during the 2008 financial crisis.

After a rise in yields ate into their value, SVB was forced to sell a portfolio of treasuries and mortgage-backed securities to Goldman Sachs at a loss of $1.8 billion.

The company then attempted to cover this gap by raising $2.25 billion through common equity and preferred convertible stock. This couldn’t materialise as clients, afraid of losses, withdrew their deposits, resulting in a massive outflow of $42 billion in just one day.

SVB Financial Group clarified on Friday that its funds and general partner entities, which include SVB Securities and SVB Capital, are not included in the Chapter 11 bankruptcy filing. The company also stated that it intends to move forward with the evaluation of alternatives for its businesses, assets, and investments despite the filing.

The company said on Friday it has about $2.2 billion of liquidity. It had $209 billion in assets at the end of last year.