The global clearing institution Bank of London, according to a Portal report on March 12.
According to the statement, the purchase is an effort by a consortium of private equity firms:
“A consortium of leading private equity firms, led by the Bank of London, confirms that it has submitted formal proposals to His Majesty’s Treasury, the Prudential Regulation Authority at the Bank of England and the board of Silicon Valley Bank UK.”
Portal previously reported that other UK financial institutions are considering similar moves, including SoftBank-owned lender OakNorth Bank. The investment vehicle ADQ from Abu Dhabi was also interested in the SVB arm.
UK authorities have drawn up a plan to rescue start-ups and tech companies hit by the collapse of the SVB. The contingency plan will include a cash lifeline for a number of businesses.
Prime Minister Rishi Sunak said the government was “working at pace” to present a plan in the coming hours that would ensure “operational liquidity and cash flow needs” for Silicon Valley Bank’s UK clients. The UK Treasury said in a statement it will “put forward immediate plans to ensure the near-term operational and cash flow needs of Silicon Valley Bank UK’s clients can be met”.
On March 10, the Bank of England (BoE) halted the operation of SVB branches, arguing that the bank had a “limited presence” in the UK and had no “critical functions” to support the financial system. However, a letter signed to over 200 founders and CEOs of UK tech companies claimed that many fintech companies managed banking operations through the SVB and “therefore will go bankrupt immediately unless preventive action is taken”.
US regulators and White House officials are reportedly working over the weekend to fix the SVB collapse. Treasury Secretary Janet Yellen noted during an interview that a major bailout is not being considered but efforts to protect investors are underway.
The US Federal Deposit Insurance Corporation (FIDC) reportedly started an auction process for Silicon Valley Bank on the night of March 11th. Bids are said to be open for just a few hours before the trial ends later this Sunday.