According to the latest reports coming from Express.co.uk, Chancellor Jeremy Hunt there is a “serious risk” for parts of the UK economy following the collapse of Silicon Valley Bank and it’s UK arm. But the Treasury has claimed won’t have a serious impact on other British banks. Check out the latest reports about this below.
UK financial news
The finance ministry tried to ease fears of market catastrophe on Saturday after one of the US’ largest banks was shut down by regulators.
On the other hand, it’s also important to note the fact that Hunt refused on Sunday morning to confirm if the Treasury would step in to save 100 percent of deposits at Silicon Valley Bank UK.
The Treasury said in a statement that problems linked to the failure of Silicon Valley Bank were “specific to the firm” and added that the company’s collapse would have no “implications for other banks operating in the UK.”
It’s been revealed that Hunt was asked again on whether he will guarantee all the money the firms have with the bank, he said: “You’ll have to wait to see the whole plan.”
He told Sky’s Sophy Ridge On Sunday program: “There is no systemic risk to our financial system, so people should be reassured on that basis.
“But there is a serious risk to our technology and life sciences sectors, many of whom bank with this bank.”
Silicon Valey Bank scandal
CNBC notes the fact that The Santa Clara, California-based bank has historically paid employee bonuses on the second Friday of March, said the people, who declined to be identified, speaking about the awards.
The payments were for work done in 2022 and had been in process days before the bank’s collapse, the sources said.
“This year, bonus day happened to fall on SVB’s final day of independence. The institution, in the throes of a bank run triggered by panicked venture capital investors and startup founders, was seized by the Federal Deposit Insurance Corporation (FDIC) around midday Friday,” CNBC said.
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