March 11 (Reuters) – The managers of Silicon Valley Financial institution’s (SIVB.O) funding banking arm, SVB Securities, are exploring methods to purchase the collapsed lender again from its dad or mum firm, Bloomberg Information reported on Saturday.
SVB Securities Chief Government Officer Jeff Leerink and his group are in search of assist to finance a possible administration buyout of the enterprise, the report mentioned, citing folks acquainted with the matter.
Silicon Valley Financial institution and SVB Securities didn’t instantly reply to Reuters’ requests for remark.
There isn’t a certainty {that a} deal will probably be reached and different potential patrons may additionally emerge for the unit, Bloomberg mentioned.
On Friday, startup-focused lender SVB Monetary Group turned the biggest financial institution to fail for the reason that 2008 monetary disaster.
California banking regulators closed the financial institution, which did enterprise as Silicon Valley Financial institution, and appointed the Federal Deposit Insurance coverage Company (FDIC) as receiver for the later disposition of its belongings.
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Earlier on Saturday, SVB Securities mentioned its enterprise operations wouldn’t be straight impacted by the FDIC taking management of its dad or mum firm. “SVB Securities is financially secure and can proceed to function as ordinary,” Leerink mentioned in an announcement.
SVB Monetary Group is working with an funding financial institution and a legislation agency to search out patrons for its different belongings, which embody SVB Securities, Reuters reported on Friday, including that these belongings may entice rivals and personal fairness companies.
Reporting by Kanjyik Ghosh and Mrinmay Dey in Bengaluru; modifying by Grant McCool and Paul Simao
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