Regulatory authorities in the UK have been at work after the Silicon Valley Bank collapse to protect all affected firms and depositors.
The UK has announced an emergency plan which is currently underway in the UK to protect all those in the country affected by the Silicon Valley Bank collapse. The plan would likely include a cash infusion for all those startups and firms who were impacted by liquidity and cash flow issues after the collapse of the bank, which was the biggest failure amongst banks in the US after the financial crisis in 2008.
“The government is working at pace on a solution to avoid or minimise damage to some of our most promising companies in the UK and we will bring forward immediate plans to ensure the short term operational and cashflow needs of Silicon Valley Bank UK customers are able to be met,” announced Chancellor Jeremy Hunt.
Prime Minister Rishi Sunak also stated the government’s continued efforts to rescue those affected by the Silicon Valley Bank collapse. A discussion between the Prime Minister, Chancellor and the Governor of the Bank of England on the current issue is also scheduled over the weekend. The Bank of England had earlier announced its intentions to buy the UK arm of the Silicon Valley Bank, along with ordering the closure of operations of the UK subsidiary.
While the Bank of England has stated the insolvency of the SVB would lead to compensation for depositors, it was only till a certain limit. A group of CEOs and founders had also written to the Chancellor of the UK recently, urging immediate action since most of them had their banking operations with the Silicon Valley Bank.