(Reuters) -The managers of Silicon Valley Bank’s investment banking arm, SVB Securities, are exploring ways to buy the collapsed lender back from its parent company, Bloomberg News reported on Saturday.
SVB Securities Chief Executive Officer Jeff Leerink and his team are seeking help to finance a potential management buyout of the business, the report said, citing people familiar with the matter.
Silicon Valley Bank and SVB Securities did not immediately respond to Reuters’ requests for comment.
There is no certainty that a deal will be reached and other potential buyers could also emerge for the unit, Bloomberg said.
On Friday, startup-focused lender SVB Financial Group became the largest bank to fail since the 2008 financial crisis.
California banking regulators closed the bank, which did business as Silicon Valley Bank, and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver for the later disposition of its assets.
Earlier on Saturday, SVB Securities said its business operations would not be directly impacted by the FDIC taking control of its parent company. “SVB Securities is financially stable and will continue to operate as usual,” Leerink said in a statement.
SVB Financial Group is working with an investment bank and a law firm to find buyers for its other assets, which include SVB Securities, Reuters reported on Friday, adding that these assets could attract competitors and private equity firms.
(Reporting by Kanjyik Ghosh and Mrinmay Dey in Bengaluru; editing by Grant McCool and Paul Simao)
