'Inevitable' that SVB would file for bankruptcy -CIO
STORY: As a lender to start-up companies, Rathbun explains that SVB loaned money to companies that "don't necessarily have a cash-flow positive banking sheet, or cash-flow statement, [and] they do not necessarily even have prototypes for the widgets that they want to sell. So this is very, very risky lending. So if you're a large bank, and you're potentially thinking about taking it over, you might not want to touch it, because you might not get paid."
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.