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Bank of London makes takeover offer
On the 13th, Bank of London, a British settlement bank, formally submitted a takeover offer for the British subsidiary of Silicon Valley Bank (SVB). Several other banks are also reportedly considering acquisitions. Governments in the UK and US are urgently grappling with the failure of the Silicon Valley bank.
A statement from @thebankoflondon regarding @SVB_UK (Silicon Valley Bank UK Limited) pic.twitter.com/OHXx7kmpRY
—The Bank of London (@thebankoflondon) March 12, 2023
The offer takes the form of a joint acquisition by large private equity firms, led by Bank of London. The bank said it had submitted formal proposals to the UK Treasury, regulators at the Bank of England and the board of Silicon Valley Bank UK division.
Anthony Watson, Managing Director of Bank of London, said:
Given the breadth of its ramifications, Silicon Valley Bank should not fail. The proposal would be an opportunity to maintain service to Silicon Valley Bank UK corporate clients, while ensuring a more diverse banking sector in the UK.
Several other banks are also in the process of bidding to acquire the British entity of Silicon Valley Bank (SVB). Oaknorth Bank, which is owned by Softbank, and ADQ, a sovereign wealth fund in Abu Dhabi, are also said to be interested in the acquisition.
British government response
The UK government is currently giving top priority to dealing with the Silicon Valley bank failure. The Bank of England has announced that Silicon Valley Bank UK will enter bankruptcy proceedings.
Whilst Silicon Valley Bank says it does not play a significant role in the UK financial system, it recognizes that it raises concerns for Silicon Valley Bank UK corporate clients, particularly in terms of short-term cash flow. continued. It also said there could be a big impact on the liquidity of tech companies.
Talks were held over the weekend between the Bank of England Governor, the Prime Minister and the Finance Minister. The Bank of England said:
The government is urgently working on solutions to avoid or minimize damage to promising companies in the UK.
A Silicon Valley Bank UK corporate client is moving forward with a rapid plan to meet its near-term operational and cash flow needs.
U.S. Government Moves
The U.S. government is also proceeding with measures to deal with the failure of the Silicon Valley bank at a rapid pace.
The Biden administration announced a temporary intervention on the 12th to avoid a financial market crisis. All Silicon Valley Bank depositors will have access to all their funds on the 13th. Depositors of U.S. Signature Banks, which have been suspended due to the Silicon Valley bank failure, will also receive the same treatment.
Treasury Secretary Janet Yellen, Federal Reserve Chairman Jerome Powell and Federal Deposit Insurance Corporation (FDIC) Chairman Martin Grunberg explained the move in a joint statement:
We will take decisive action to strengthen confidence in the banking system and protect the American economy. The measures will ensure that the U.S. banking system continues to play its vital role in protecting deposits and extending credit to households and businesses, and to support strong, sustainable economic growth.
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Bank of London and others offer takeover of bankrupt SVB UK entity appeared first on Our Bitcoin News.
