The parent company of Silicon Valley Bank filed for bankruptcy protection after regulators seized the company's banking unit as concern spread among its long-standing clientele of tech startups.&nbsp;

In a Chapter 11 petition filed&nbsp;in New York, SVB Financial Group listed assets and liabilities totalling up to $10 billion each, as per a Bloomberg report.&nbsp;

Silicon Valley Bank was placed in Federal Deposit Insurance Corp. receivership because it is a commercial bank with a charter from the State of California and is a member of the Federal Reserve system rather than filing for bankruptcy. Yet, its parent company is allowed to file for bankruptcy preotection in order to safeguard its remaining assets and begin working to pay back creditors, including bondholders.&nbsp;

The venture capital arm of SVB Capital and the broker-dealer SVB Securities are not mentioned in the filing, a statement claims.

SVB, based in Santa Clara, California, had nearly $209 billion in assets as of the end of last year, making it the largest bank to collapse in more than 10&nbsp;years, according to the FDIC. Aside from Washington Mutual Inc., which collapsed in 2008, it is also the second-largest bank to be placed under receivership by the FDIC, reported Moneycontrol.&nbsp;

ALSO WATCH |&nbsp;India startups have deposits worth $1 bn in SVB | Tech It Out

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Tech industry's concerns increased in March after Peter Thiel's Founders Fund and other prominent venture capital firms recommended their portfolio companies to withdraw cash from the bank. After suffering a substantial loss on its portfolio, the bank's parent firm stated the following day that it would attempt to raise more than $2 billion.&nbsp;

As per a&nbsp;statement from the bank's 20th anniversary, Bill Biggerstaff and Robert Medearis' poker game resulted in the founding of Silicon Valley Bank in 1983. The company has concentrated on providing financial services to tech startups ever since it was founded.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/explained-silicon-valley-bank-crisis-did-us-central-bank-miss-headwinds-572334">Explained | Silicon Valley Bank crisis: Did US central bank miss headwinds?</a>

The parent firm had $475 million in other assets, $2.3 billion in cash, and $500 million in investment securities as of December 31. Its long-term debt at the time was around $3.4 billion.&nbsp;

(With inputs from agencies) 
 
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The parent company of Silicon Valley Bank filed for bankruptcy protection after regulators seized the company's banking unit as concern spread among its long-standing clientele of tech startups.

The parent company of Silicon Valley Bank filed for bankruptcy protection after regulators seized the company's banking unit as concern spread among its long-standing clientele of tech startups. In a Chapter 11 petition filed in New York, SVB Financial Group listed assets and liabilities totalling up to $10 billion each, as per a Bloomberg report. Silicon Valley Bank was placed in Federal Deposit Insurance Corp. receivership because it is a commercial bank with a charter from the State of California and is a member of the Federal Reserve system rather than filing for bankruptcy. Yet, its parent company is allowed to file for bankruptcy preotection in order to safeguard its remaining assets and begin working to pay back creditors, including bondholders. The venture capital arm of SVB Capital and the broker-dealer SVB Securities are not mentioned in the filing, a statement claims. SVB, based in Santa Clara, California, had nearly $209 billion in assets as of the end of last year, making it the largest bank to collapse in more than 10 years, according to the FDIC. Aside from Washington Mutual Inc., which collapsed in 2008, it is also the second-largest bank to be placed under receivership by the FDIC, reported Moneycontrol. ALSO WATCH | India startups have deposits worth $1 bn in SVB | Tech It Out Tech industry's concerns increased in March after Peter Thiel's Founders Fund and other prominent venture capital firms recommended their portfolio companies to withdraw cash from the bank. After suffering a substantial loss on its portfolio, the bank's parent firm stated the following day that it would attempt to raise more than $2 billion. As per a statement from the bank's 20th anniversary, Bill Biggerstaff and Robert Medearis' poker game resulted in the founding of Silicon Valley Bank in 1983. The company has concentrated on providing financial services to tech startups ever since it was founded. ALSO READ | Explained | Silicon Valley Bank crisis: Did US central bank miss headwinds? The parent firm had $475 million in other assets, $2.3 billion in cash, and $500 million in investment securities as of December 31. Its long-term debt at the time was around $3.4 billion. (With inputs from agencies) WATCH WION LIVE HERE:

SVB Financial, parent firm of Silicon Valley Bank, files for bankruptcy protection

A Wall Street Journal report says that US prosecutors have opened an investigation into the collapse of Silicon Valley Bank. The US Justice Department is reportedly probing the sudden fall of the bank, leading to ripples in markets across the world. The bank was shuttered on Friday following a bank run. Meanwhile, the Securities and Exchange Commission has also launched a parallel investigation.

As part of the probe, officials are looking into stock sales by officers of SVB Financial Group, which owned the bank, WSJ reported. SEC Chair Gary Gensler had earlier said that the focus of the agency is on monitoring for market stability and identifying and prosecuting any form of misconduct that might threaten investors during periods of volatility.

As the Silicon Valley Bank collapsed, followed by the Signature Bank, regulators find themselves scrambling to contain the damage so that it does not affect the rest of the sector.&nbsp;

Meanwhile, on Tuesday ratings agency Moody's cut its outlook on the US banking system to "negative" from "stable."

Earlier this week, SVB Financial Group and two other executives were sued by shareholders. They accused them of concealing how rising interest rates would leave its Silicon Valley Bank unit susceptible to a bank run.

Fed&nbsp;considers tougher rules for midsize banks&nbsp;

Reuters has reported that the Federal Reserve is considering tougher rules and oversight for midsize banks following SVB's collapse. A review of the $209 billion bank's failure is being conducted by Fed Vice Chair for Supervision Michael Barr. It is expected that the review could lead to strengthened rules on banks in the $100 billion to $250 billion range.

The review will be released by May 1, and will be in addition to a review of bank capital rules by Barr which is already underway.

The Wall Street Journal regarding midsize banks&nbsp;is likely to lead&nbsp;to more stringent capital and liquidity requirements and potentially beefed up annual "stress tests."

New SVB CEO urges clients to move deposits back

Meanwhile,&nbsp;Silicon Valley Bank's new Chief Executive Tim Mayopoulos has urged top venture capital clients of the bank to move their deposits to its newly created bridge entity. The development followed a virtual meeting. The former Fannie Mae CEO was appointed to head&nbsp;Silicon Valley Bridge Bank NA by&nbsp;the Federal Deposit Insurance Corporation (FDIC).&nbsp;

Mayopoulos also assured clients at the meeting that deposits at the bank were now as safe as they would be in any US&nbsp;bank or institution.

Consumers reach out to other banks

Following the collapse of SVB, consumers have flooded banking giants, including JPMorgan Chase &amp; Co,&nbsp;Bank of America Corp&nbsp;and Citigroup Inc. The transfers have reached billions of dollars&nbsp;as investors are worried about the financial health of smaller regional lenders.

However, the&nbsp;lenders are careful not to solicit customers from other banks due to concerns that they could accelerate the outflows.

(With inputs from agencies)

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A Wall Street Journal report says that US prosecutors have opened an investigation into the collapse of Silicon Valley Bank. The US Justice Department is reportedly probing the sudden fall of the bank, leading to ripples in markets across the world.

A Wall Street Journal report says that US prosecutors have opened an investigation into the collapse of Silicon Valley Bank. The US Justice Department is reportedly probing the sudden fall of the bank, leading to ripples in markets across the world. The bank was shuttered on Friday following a bank run. Meanwhile, the Securities and Exchange Commission has also launched a parallel investigation. As part of the probe, officials are looking into stock sales by officers of SVB Financial Group, which owned the bank, WSJ reported. SEC Chair Gary Gensler had earlier said that the focus of the agency is on monitoring for market stability and identifying and prosecuting any form of misconduct that might threaten investors during periods of volatility. As the Silicon Valley Bank collapsed, followed by the Signature Bank, regulators find themselves scrambling to contain the damage so that it does not affect the rest of the sector. Meanwhile, on Tuesday ratings agency Moody's cut its outlook on the US banking system to "negative" from "stable." Earlier this week, SVB Financial Group and two other executives were sued by shareholders. They accused them of concealing how rising interest rates would leave its Silicon Valley Bank unit susceptible to a bank run. Fed considers tougher rules for midsize banks Reuters has reported that the Federal Reserve is considering tougher rules and oversight for midsize banks following SVB's collapse. A review of the $209 billion bank's failure is being conducted by Fed Vice Chair for Supervision Michael Barr. It is expected that the review could lead to strengthened rules on banks in the $100 billion to $250 billion range. The review will be released by May 1, and will be in addition to a review of bank capital rules by Barr which is already underway. The Wall Street Journal regarding midsize banks is likely to lead to more stringent capital and liquidity requirements and potentially beefed up annual "stress tests." New SVB CEO urges clients to move deposits back Meanwhile, Silicon Valley Bank's new Chief Executive Tim Mayopoulos has urged top venture capital clients of the bank to move their deposits to its newly created bridge entity. The development followed a virtual meeting. The former Fannie Mae CEO was appointed to head Silicon Valley Bridge Bank NA by the Federal Deposit Insurance Corporation (FDIC). Mayopoulos also assured clients at the meeting that deposits at the bank were now as safe as they would be in any US bank or institution. Consumers reach out to other banks Following the collapse of SVB, consumers have flooded banking giants, including JPMorgan Chase & Co, Bank of America Corp and Citigroup Inc. The transfers have reached billions of dollars as investors are worried about the financial health of smaller regional lenders. However, the lenders are careful not to solicit customers from other banks due to concerns that they could accelerate the outflows. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

US Justice Department launches probe into collapse of Silicon Valley Bank: Report

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SVB Financial, parent firm of Silicon Valley Bank, files for bankruptcy protection

US Justice Department launches probe into collapse of Silicon Valley Bank: Report