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SVB's investment banking arm explores buying lender back, Bloomberg News reports

Published 03/11/2023, 07:49 PM
Updated 03/11/2023, 09:10 PM
© Reuters. A notice hangs on the door of Silicon Valley Bank (SVB) located in San Francisco, California, U.S. March 10, 2023. REUTERS/Krystal Hu

(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.

© Reuters. A notice hangs on the door of Silicon Valley Bank (SVB) located in San Francisco, California, U.S. March 10, 2023. REUTERS/Krystal Hu

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.

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