Why SVB collapsed, how it affects UK industry, and why Jeremy Hunt labelled it a ‘serious risk’

March 13, 2023 11:37 am

The Bank of England and the US Treasury Secretary have both tried to reassure investors that its collapse doesn’t represent a wider threat to the banking and technology sectors.SVB was founded in 1983 and has long been a popular choice for investors and entrepreneurs in the technology sector. It was claimed in 2015 that it served 65 per cent of all US start-ups.

On 8 March, SVB announced it needed to raise $2.25bn in order to balance the books after it was forced to sell many of its government bonds at a $1.8bn loss to increase its capital. If insolvency procedures had begun for SVB UK, eligible depositors would have had £85,000 of their money protected or up to £170,000 for joint accounts.

“The Bank and HMT [the Treasury] can confirm that all depositors’ money with SVB UK is safe and secure as a result of this transaction,” the Bank of England said in a statement.

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Silicon Valley Bank UK trouble won't affect other British banks, according to finance ministryA British clearing bank, the Bank of London, was considering a rescue bid for the UK arm of Silicon Valley Bank, as more than 250 UK tech executives signed a letter requesting government intervention. BAILOUT PARTY!!! Socialism for the rich, cold hard capitalism for the rest of us. Bailouts and subsidies galore for banks whenever they need it or even just feel like it. Gotta prop the Net Zero companies up using tax payer money I suppose.
Source: SkyNews - 🏆 35. / 67 Read more »

UK tech industry urges Downing Street to step in over Silicon Valley Bank collapse\n\t\t\tKeep abreast of significant corporate, financial and political developments around the world.\n\t\t\tStay informed and spot emerging risks and opportunities with independent global reporting, expert\n\t\t\tcommentary and analysis you can trust.\n\t\t Svb will ruin lives I thought they have drunken the Rand/Mogg kool aid of zero state and sovereign citz? Ellielina5
Source: FT - 🏆 113. / 51 Read more »

Silicon Valley Bank: the spectacular unravelling of the tech industry’s banker\n\t\t\tKeep abreast of significant corporate, financial and political developments around the world.\n\t\t\tStay informed and spot emerging risks and opportunities with independent global reporting, expert\n\t\t\tcommentary and analysis you can trust.\n\t\t Strap in Bastards screwing over other bastards and we end up carrying the bag for both sides. The taxpayers end up footing the bill for their golden parachute and soft landing. What a effing joke and a mockery perpetrated against the middle class and the working class in this country!!! Ponzi 2.3
Source: FT - 🏆 113. / 51 Read more »