SVB Financial seeks bankruptcy protection as banking turmoil persists

SVB Financial Group's move to begin bankruptcy proceedings comes as emergency measures to shore up confidence have so far failed to dispel worries about a financial contagion.

“It is impossible to know if there are other shoes to drop, but I think a good majority of the negative news is out there,” said Art Hogan, chief market strategist at B. Riley Wealth Management.

To plug that hole, it attempted to raise $2.25 billion in common equity and preferred convertible stock but spooked clients pulled out deposits that led to $42 billion of outflows in a day. SVB Securities and SVB Capital’s funds and general partner entities are not included in the Chapter 11 filing, the company said on Friday, adding it planned to proceed with the process to evaluate alternatives for the businesses, as well its other assets and investments.

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