SILICON Valley Bank UK has been sold to HSBC in a last ditch effort to save thousands of jobs and businesses.
The “white knight” sale was approved by the government and Bank of England early this morning.
The Alphabeta building in London’s Finsbury Square, which houses the London operations of Silicon Valley Bank
It will come as a huge relief to tech start-ups that feared not being able to pay staff or suppliers today.
The Treasury confirmed no taxpayer funds were involved in the transaction and all customer deposits have been protected.
Chancellor Jeremy Hunt said: “The UK’s tech sector is genuinely world-leading and of huge importance to the British economy, supporting hundreds of thousands of jobs.
“I said yesterday that we would look after our tech sector, and we have worked urgently to deliver on that promise and find a solution that will provide SVB UK’s customers with confidence.”
The Chancellor added: “Today the government and the Bank of England have facilitated a private sale of Silicon Valley Bank UK; this ensures customer deposits are protected and can bank as normal, with no taxpayer support. I am pleased we have reached a resolution in such short order.”
Yesterday businesses warned of a warned of a “start up extinction event” following the collapse of Silicon Valley Bank.
Around 3,000 companies held £7bn in deposits with the failed institution’s UK branch.
Speaking on board his jet to San Diego, Mr Suank insisted there was limited “contagion risk” for the wider UK economy, but the Treasury had spent the weekend looking at how to protect depositors cash-flows and avoid a meltdown.
