London: HSBC has emerged as a white knight for the UK arm of Silicon Valley Bank, which collapsed at the end of last week. The deal, for a nominal £1, avoids the use of tax payer money and talk of a “bailout” - a relief to the Chancellor, whose budget preparations have been interrupted by the scramble to restore order. Still, Silicon Valley Bank was an important part of the UK’s technology and life sciences ecosystem, a fact underlined by the many London-listed companies reporting they used the bank.
HSBC said the deal will complete immediately and will be funded from existing resources The BOE and the UK Treasury, which helped broker the deal, said no taxpayer funds will be used and all of the UK bank’s customers will be able to access their deposits from todayAt the same time as the deal was announced, a raft of UK-listed companies reported their exposure to Silicon Valley Bank and its UK arm, including: Syncona Limited: The funder of healthcare estimated its indirect exposure across its portfolio to SVB and its UK arm is about 6 percent of its net asset value. Learning Technologies Group Plc: The digital learning company said about £11.7m of its £110.7m total cash and cash equivalents were on deposit with SVB and SVB UK.
Trustpilot Group Plc: The reviews website said SVB UK was its principal banking partner, but it has alternative banking relationships that will allow it to continue operating. Auction Technology Group Plc: The auction platform said 5 percent of its $10m cash at bank is held on deposit at Silicon Valley Bank, and the bank is one sixth of its Senior Facilities syndicate.Jeremy Hunt is due to present his Spring Budget to lawmakers on Wednesday and is under pressure to boost growth amid forecasts of a recession and to address a prolonged cost-of-living crisis. Hunt is expected to unveil measures to cut labor inactivity and boost business investment to spur UK economic growth.Rishi Sunak will meet US President Joe Biden and Australian Prime Minister Anthony Albanese in San Diego on Monday to unveil a joint effort to develop a new nuclear-powered submarine aimed at countering China’s growing naval might in the Asia-Pacific region.
