Global clearing house Bank of London has made a proper bid to accumulate Silicon Valley Bank’s UK subsidiary, in line with a press release revealed by Reuters on March 12.
According to the statement, the acquisition is the work of a consortium of personal equity firms:
“A consortium of leading private equity firms, led by The Bank of London, confirms that it has made formal proposals to His Majesty’s Treasury, The Prudential Regulation Authority at The Bank of England and the Board of Silicon Valley Bank UK.”
Reuters earlier reported that other UK financial institutions were scrutinizing similar moves, including SoftBank’s lender OakNorth Bank. Abu Dhabi Investment ADQ was also inquisitive about the SVB arm.
British authorities have developed a plan to rescue startups and tech corporations affected by the collapse of SVB. The contingency plan will provide a lifeline for a lot of businesses.
Prime Minister Rishi Sunak he said The government is working “at pace” to present a plan in the approaching hours that may secure “the operational liquidity and money flow needs” for Silicon Valley Bank UK customers. The UK Treasury said in a press release it will “provide immediate plans to make sure the short-term operational needs and money flow of Silicon Valley Bank UK customers are met”.
On March 10, the Bank of England (BoE) halted operations of SVB branches, stating that the bank had a “limited presence” within the UK and no “critical functions” to support the economic system. However, the letter, signed by greater than 200 founders and CEOs of UK tech corporations, said many fintech firms managed banking operations through the SVB and “thus will soon go into receivership unless preventive motion is taken.”
US regulators and White House officials are reportedly working over the weekend to sort out SVB’s demise. Treasury Secretary Janet Yellen noted during an interview that a significant bailout was not being considered, but investor protection efforts were underway.
The U.S. Federal Deposit Insurance Corporation (FIDC) reportedly began the auction process on March 11 evening for Silicon Valley Bank. The deals are allegedly only open for a couple of hours before the trial closes later this Sunday.
