A potential buyer for the British arm of the bankrupt American Silicon Valley Bank emerged yesterday, Sunday, while Prime Minister Rishi Sunak stated that his government is working to mitigate any repercussions for businesses stemming from the bank's collapse. The London Bank indicated it has submitted a formal proposal for the British arm of Silicon Valley Bank to the authorities, including the Treasury and the Bank of England.
The tragic bankruptcy of Silicon Valley Financial Group, which focuses on technology startups, on Friday marks the largest bank failure in the United States since the 2008 financial crisis. British Finance Minister Jeremy Hunt pointed out yesterday that the bankruptcy could significantly impact British tech companies due to the importance of Silicon Valley Bank to some clients.
The London Bank, which is a clearing bank, noted that it is leading a consortium of direct investment firms to complete the deal. A source familiar with the discussions told Reuters that SoftBank-owned Oak North Bank is also considering making a bid for the UK "SVB," confirming a previous report by Sky News, that Abu Dhabi's ADQ Holding Company is also exploring the matter.
Two sources familiar with the talks stated on Saturday that the consulting company Rothschild & Co is exploring options for the Silicon Valley subsidiary. Sunak expressed that he understands the "concerns of the bank's customers and their fears,” in comments made to reporters accompanying him on his flight to the United States. Upon arriving in San Diego, Sunak confirmed to the media that he has been working over the past few days, including during his flight from London, with his finance minister, the Bank of England, and regulatory authorities to "find the optimal solution."
