UK races to reduce damage from Silicon Valley Bank collapse

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Jeremy Hunt offered a speech Friday to set out prepare for financial development in the U.K.

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British financing minister Jeremy Hunt stated on Sunday he was dealing with Prime Minister Rishi Sunak and Bank of England Governor Andrew Bailey to “avoid or minimise damage” arising from the turmoil swallowing up the UK arm of Silicon Valley Bank.

“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,” Hunt stated.

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Friday’s remarkable failure of the U.S. moms and dad bank, which concentrates on tech start-ups, was the most significant because the 2008 monetary crisis.

Talks were held over the weekend including Hunt, Sunak and Bailey to talk about the concerns dealt with by British tech business impacted by the collapse, the British Treasury stated.

Hunt stated the British federal government was dealing with the problem as a “high priority” and stated that, offered the value of the bank to its clients, its failure might have a substantial effect on some business.

More than 250 UK tech company presidents signed a letter resolved to Hunt on Saturday requiring federal government intervention, a copy seen by Reuters reveals.

Under insolvency procedures for banks in Britain, some depositors are qualified for as much as 85,000 pounds ($102,000) of settlement for money held at loan providers, or 170,000 pounds for joint accounts.

Hunt repeated remarks by the BoE that in general Silicon Valley Bank has a minimal existence in Britain and does not carry out functions important to the monetary system.

The BoE stated on Friday that it was looking for a court order to position SVB UK into an insolvency treatment.

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