The Bank of London has taken the initiative to acquire the British operations of the Silicon Valley Bank, which closed at the end of last week.
The clearing bank, based in London, said on March 12 that it had sent offers to buy British operations to the UK authorities, including the Treasury and the Bank of England (BoE). This financial institution heads a group of investors, which includes private equity funds.
Anthony Watson, co-founder, and CEO of Bank of London said that the bankruptcy of the Silicon Valley Bank is a critical situation given the importance of the community it serves. He also called the current state of affairs a unique opportunity to provide a more diversified banking sector in the UK, while maintaining the continuity of servicing the British customer base of SVB.
The Silicon Valley bank was shut down by regulators after checking deposits. The Federal Deposit Insurance Corporation (FDIC) is currently working on ways to pay debts to depositors, including the sale of bank assets at auction. The auction was held on March 12 but did not bring any results, because there were no buyers. Federal regulators have said they will do everything possible to ensure that depositors have access to their funds.
The situation with the Silicon Valley Bank has had an impact not only on the US financial system. In many countries, startups have turned to officials for help in connection with the incident. For example, in the UK, the founders of several dozen technology companies appealed to the Chancellor of the Exchequer, Jeremy Hunt, with a request to intervene in the current situation.
The Bank of England has introduced the bankruptcy procedure for Silicon Valley Bank UK Limited. The financial institution received a UK banking license in 2012. The bankruptcy procedure is necessary to reduce the damage from the collapse of the bank and protect British companies from huge losses.
As we have reported earlier, Regulators Close Crypto-Focused Signature Bank.
UPD: later it became known that the British branch of Silicon Valley Bank, bought by HSBC for £1.