The Bank of London, has stated that it has formally offered to purchase Silicon Valley Bank’s (SVB) UK branch, which failed on Friday.
“A consortium of leading private equity firms, led by The Bank of London, confirms it has submitted formal proposals to His Majesty’s Treasury, The Prudential Regulation Authority at The Bank of England, and the Board of Silicon Valley Bank UK,” reads a statement.
“Silicon Valley Bank cannot be allowed to fail given the vital community it serves. This is a unique opportunity to ensure the UK has a more diversified banking sector, whilst allowing continuity of service to SVB’s UK client base. It would be deeply disappointing for this moment to lead to further consolidation of power among big banks,” said Anthony Watson, group CEO and founder of The Bank of London
As a result of the Bank of England’s Friday insolvency proceedings, the UK government is currently developing preparations to assist SVB UK clients with their short-term operational and cash flow needs. By Monday, an announcement is expected.
Many other banks are reportedly considering the purchase, but as of the time of writing, only The Bank of London has shown an interest.
According to Sky News, UK challenger bank OakNorth is discussing acquiring SVB UK.
According to The FT, the government has received interest from a Middle Eastern buyer.
The government is reportedly seeking to secure Barclays as a buyer, according to The Evening Standard. The £12 million contract to help companies previously given to Tech Nation was controversially secured by Barclays, which has also long conducted entrepreneurship programs.