SVB Financial Group (SIVB.O) said on Friday it filed for a court-supervised reorganization under Chapter 11 bankruptcy protection to seek buyers for its assets, days after its former unit Silicon Valley Bank was taken over by U.S. regulators.
The move to commence bankruptcy proceedings comes as emergency measures to shore up confidence have so far failed to dispel worries about a financial contagion.
Financial stocks have lost over billions of dollars in value since the collapse of Silicon Valley Bank and Signature Bank (SBNY.O) last week, while credit stress has worsened for Wall Street's biggest banks.
"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.
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