Beautiful Virgin Islands

Tuesday, Mar 28, 2023

British Tech Sector "At Serious Risk" After US Bank Collapse: UK Minister

British Tech Sector "At Serious Risk" After US Bank Collapse: UK Minister

Britain's technology and life sciences sectors are at "serious risk" following the closure of the Silicon Valley Bank, Chancellor Jeremy Hunt warned on Sunday.
The California-based SVB bank, which was closed by US authorities on Friday, manages the money of some of the UK's most promising businesses, Hunt said.

"There is a serious risk to our technology and life sciences sectors, many of whom bank with this bank," Hunt said in an interview with British television channel Sky News.

"Most people won't have heard of the Silicon Valley Bank but it happens to look after the money of some of our most promising and exciting businesses."

The bank is expected to reopen on Monday under a new name with the US deposit guarantee agency, the FDIC, taking control.

Hunt said the governor of the Bank of England had made it "very clear" that there was no systemic risk to the UK's financial system due to the SVB's collapse.

The government would bring forward plans "very soon" to ensure people are able to meet their cash flow requirements and pay staff.

It would also put a longer-term solution in place to minimise or completely avoid losses to British companies, he added.

The British Treasury said Saturday that the problems of the failed SVB bank were "specific to the firm" and had no "implications for other banks operating in the UK".

The bank failed after its customers, mainly from the tech sector, made massive withdrawals, and after its latest attempt to raise new money proved unsuccessful.

Little known to the general public, SVB specialised in financing start-ups and had become the 16th-largest US bank by assets.

Its demise is not only the largest bank failure since Washington Mutual in 2008, but also the second-largest retail bank failure in the US.

The Bank of England said it intended to pursue insolvency with regards to the bank's British subsidiary.

"It was looking inevitable that the dramatic loss of confidence in SVB would also sweep its UK arm into insolvency," said Susannah Streeter of financial firm Hargreaves Lansdown.

"The run on the US bank spooked customers banking with the British subsidiary, despite protestations that it was ring-fenced from its parent," she added.

Sky News reported that the Bank of London, which launched just two years ago, is among those mulling a bid for SVB's British arm.
Newsletter

Related Articles

Beautiful Virgin Islands
Close
0:00
0:00
AOC explains why she opposes banning TikTok
I have a dream, MLK inspiring speech
UK: Humza Yousaf replaces Nicola Sturgeon as SNP leader and first minister in Scotland
Aretha Franklin, Marvis Staples - Oh Happy Day
In a dramatic U-turn against His Government: Judicial Reform Legislation Must Be Halted, Says Israeli Defense Minister Yoav Gallant
BVI Freedom Song
Gordon Moore, a co-founder of Intel Corporation, died at 94
Billy Preston - You Can't Beat God Giving (Live)
Powell: Silicon Valley Bank was an 'outlier'
VIRGIN ISLANDS REGGAE CARIBBEAN RIDDIMZ
Donald Trump arrested – Twitter goes wild with doctored pictures
Oh Happy Day Edwin Hawkins - Anthony Brown w FBCG Combined Choir
NYPD is setting up barricades outside Manhattan Criminal Court ahead of Trump arrest.
'Stand by Me' performed by Karen Gibson and The Kingdom Choir
Credit Suisse's Scandalous History Resulted in an Obvious Collapse - It's time for regulators who fail to do their job to be held accountable and serve as an example by being behind bars.
National Anthem of the British Virgin Islands - Oh, Beautiful Virgin
Home Secretary Suella Braverman tours potential migrant housing in Rwanda as asylum deal remains mired in legal challenges
Hello Dolly
Paris Rioting vs Macron anti democratic law
for KING & COUNTRY - Amen (Reborn) [feat. Lecrae & The WRLDFMS Tony Wi
'Sexual Fantasy' Assignment At US School Outrages Parents
Bob Marley - Get Up Stand Up
Credit Suisse to borrow $54 billion from Swiss central bank
Yes He Can
Russian Hackers Preparing New Cyber Assault Against Ukraine
What A Friend We Have In Jesus
Jeremy Hunt insists his Budget will get young parents and over-50s back into work
Unforgettable
If this was in Tehran, Moscow or Hong Kong
Touch The Hem Of His Garment
Nashville police officer, and a female driver shooting one another
The Lord's Prayer
TRUMP: "Standing before you today, I am the only candidate who can make this promise: I will prevent World War III."
THE GOD MOVEMENT...BEAUTIFUL BVI
Mexican President Claims Mexico is Safer than the U.S.
Siyahamba
A brief banking situation report
Ray Charles And The Voices Of Jubilaton, Oh, Happy Day
Lady bites police officer and gets instantly reaction
Ramblin' Rose
We are witnessing widespread bank fails and the president just gave a 5 min speech then walked off camera.
Protoje - Who Knows ft. Chronixx
Donald Trump's asked by Tucker Carlson question on if the U.S. should support regime change in Russia?.
Pressure - Virgin Islands Nice
Good news: The U.S. government is now guaranteeing all deposits, held by, Silicon Valley Bank, and the funds are available as of today
Phil Wickham - House Of The Lord
Silicon Valley Bank exec was Lehman Brothers CFO
My God Is Real (Yes, God Is Real)
In a potential last-ditch effort, HSBC is considering a rescue deal to save Silicon Valley Bank UK from insolvency
The Lion King Circle of Life by LEBO M. — LIVE at the HAVASI Symphonic
BBC Director General, Tim Davie, has apologized, but not resigned, yet, following the disruption of sports programmes over the weekend
Louis Armstrong - When The Saints Go Marching In
A Mississippian man, who was once considered a “ticking time bomb,” has lost a whopping 165 kilograms! What motivated this incredible transformation?
Kanye West Sunday Service - hallelujah, salvation, and glory
Elon Musk Is Planning To Build A Town In Texas For His Employees
Jonathan Nelson - I Believe (Island Medley
The Silicon Valley Bank’s collapse effect is spreading around the world, affecting startup companies across the globe
From The Virgin Islands Sqad Up
City officials in Berlin announced on Thursday that all swimmers at public pools will soon be allowed to swim topless
Common, John Legend - Glory
Fitness scam
Anthony Evans vs. Jesse Campbell - If I Ain't Got You
Market Chaos as USDC Loses Peg to USD after $3.3 Billion Reserves Held by Silicon Valley Bank Closed.
I have a dream, MLK inspiring speech
A primitive judge in Australia sparked outrage when he told a breastfeeding woman to leave his courtroom for being “a distraction"
Aretha Franklin, Marvis Staples - Oh Happy Day
Barcelona is feeling the heat as they face corruption charges over payments to former vice-president of Spain's referees' committee, Jose Maria Enriquez Negreira
BVI Freedom Song
Senator Tom Cotton: If the Mexican Government Won’t Stop Cartels from Killing Americans, Then U.S. Government Should
Billy Preston - You Can't Beat God Giving (Live)
Banking regulators close SVB, the largest bank failure since the financial crisis
VIRGIN ISLANDS REGGAE CARIBBEAN RIDDIMZ
The unelected UK Prime Minister Rishi Sunak, an immigrant himself, defends new controversial crackdown on illegal migration
Oh Happy Day Edwin Hawkins - Anthony Brown w FBCG Combined Choir
Old clip of Bill Gates saying Ukraine is a big, fat, corrupt sinkhole is going viral
'Stand by Me' performed by Karen Gibson and The Kingdom Choir
Man’s penis amputated by mistake after he’s wrongly diagnosed with a tumour
National Anthem of the British Virgin Islands - Oh, Beautiful Virgin
In a major snub to Downing Street's Silicon Valley dreams, UK chip giant Arm has dealt a serious blow to the government's economic strategy by opting for a US listing
Hello Dolly
JP Morgan Becomes First Bank to Predict UK Will Avoid Recession
for KING & COUNTRY - Amen (Reborn) [feat. Lecrae & The WRLDFMS Tony Wi
JP Morgan Becomes First Bank to Predict UK Will Avoid Recession
Bob Marley - Get Up Stand Up
How do stolen goods end up on Amazon, eBay and Facebook Marketplace?
Yes He Can
It's the question on everyone's lips: could a four-day workweek be the future of employment?
What A Friend We Have In Jesus
Is Gold the Ultimate Safe Haven Asset in Times of Uncertainty?
Unforgettable
×