LONDON (Reuters) – British Finance Minister Jeremy Hunt said on Thursday he would work with Prime Minister Rishi Sunak and Bank of England Governor Andrew Bailey to “avert damage” from the turmoil involving the British arm of Silicon Valley Bank. Or minimize.” (SIVB.O).
“We are moving forward with near-term plans to ensure we can meet the short-term operational and cash flow needs of Silicon Valley Bank’s UK clients,” Hunt said.
Friday’s dramatic collapse of a US parent bank focused on tech startups was the biggest since the 2008 financial crisis.
Hunt, Snack and Bailey met over the weekend to discuss issues facing UK tech companies affected by the collapse, according to the UK Treasury Department.
Hunt said the UK government was treating the issue as a “high priority” and given its importance to bank customers, its failure could have a significant impact on some companies. said that there is
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More than 250 British tech chief executives signed a letter to Hunt on Saturday calling for government intervention, a transcript seen by Reuters shows.
Under UK bank insolvency proceedings, some depositors are entitled to compensation of up to £85,000 ($102,000) for cash held by lenders, or up to £170,000 for joint accounts. I have.
Hunt echoed the BoE’s comments that Silicon Valley banks as a whole have a limited presence in the UK and are not performing a vital function for the financial system.
The BoE said on Friday it is seeking a court order to put SVB UK into bankruptcy proceedings.
($1 = £0.8314)
Reporting by Andrew MacAskill.Edited by Frances Kelly and Hugh Lawson
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