Bankers have been evaluating a potential sale of Silicon Valley Bank, according to a person familiar with the matter, though it’s unlikely a big bank would step forward as a potential suitor at this point to buy a troubled institution whose shareholders and customers are fleeing.
Shares of SVB were halted premarket after sliding 63% to $39.40 and didn’t begin trading with the rest of the stock market. As recently as Wednesday, the stock traded in the $260s. The bank’s web access was down as of Friday morning.
Regulators are very unlikely to allow huge banks like JPMorgan Chase, Bank of America or Wells Fargo to buy Silicon Valley Bank because they are already viewed as “too big to fail” and letting them get bigger through acquisitions would only exacerbate that problem, according to a person familiar with the matter.
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