LONDON (Reuters) – British Finance Minister Jeremy Hunt said on Sunday he was working with Prime Minister Rishi Sunak and Bank of England Governor Andrew Bailey to “avoid or try to Reducing damage from “chaos engulfing the UK’s Silicon Valley affiliate Bank.
“We’ve been working in a rhythm all weekend and all night,” Hunt told Sky News. “We will be coming up with plans very quickly to make sure people can meet their cash flow needs to pay staff.”
Hunt said efforts were focused on finding “long-term solutions that minimize , and even avoided losses altogether for some of our most promising companies.”
Friday’s major collapse of SVB Financial Group, a U.S. bank focused on tech start-ups, is the result of 170 Largest US collapse since the financial crisis.
Given the bank’s importance to its customers, its collapse could have a significant impact on some firms, Hunt said.
Consulting firm Rothschild & Co is exploring options as bankruptcy looms for the UK arm of Silicon Valley Bank UK Limited, two people familiar with the discussions told Reuters on Saturday. . The Bank of England said it was seeking a court order to place its UK arm in bankruptcy proceedings.
More than 102 chief executives of UK tech companies signed a letter to Hunt on Saturday calling for government intervention, a copy seen by Reuters show.
Some depositors are eligible to receive up to ,000 pounds ($ under the Bank of England’s insolvency proceedings , 000) compensation for cash held by lenders, or 250, 102 GBP for joint accounts. Customers may not be able to recover deposits in excess of this amount.
Hunt reiterated the BoE’s comments that banks across Silicon Valley have limited presence in the UK and do not perform functions critical to the financial system.
In the U.S., the receiver-designated Federal Deposit Insurance Corporation (FDIC) is trying over the weekend to find another bank willing to merge with Silicon Valley Bank, people familiar with the matter said Friday, to minimize the impact. The implications for other U.S. regional banks if regulators don’t find a buyer over the weekend to protect uninsured deposits.
(1 USD=0.8314 GBP)