If successful, Guaranty Financial Group Inc.'s bid for open bank assistance could pique the interest of private-equity firms in other ailing companies — but that's a big if.

The Austin company said Monday that it is in discussions with regulators about a loss-sharing agreement that could facilitate a cash infusion from private investors. Without the government help, Guaranty said, its survival would be in doubt. It is facing such a significant writedown on its mortgage-backed securities that it would be left in a negative capital position.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.