Silicon Valley Bank (UK)

[jamesbrown]

I don't suppose you had an account with SVB UK...

[AtW]

I don't suppose you had an account with SVB UK...

Took you a long time to ask...

Nope.

Using one of them "too-big-to-fail" banks...

I always thought it was idiotic to use something like SVB, however if your VCs term sheet says you get XX mln for YY shares, and last condition is to keep money in SVB then it's a no brainer to accept.

[jamesbrown]

it's a no brainer to accept.

That sounds about right

[AtW]

That sounds about right

It should be right - certain services like having money in a bank should not be a worry to the owner and if private banks can't fking do it then money should and will be deposited in BoE account, which is ... fully guaranteed?

Maybe banks with deposits should be obligated to keep said money there and solve this non-existent problem of guaranteeing 100% of customer money?

[SueEllen]

HSBC to the rescue

https://www.theguardian.com/business...-business-live

Newsflash: HSBC UK Bank plc is acquiring Silicon Valley Bank UK Limited (SVB UK) for £1, after a weekend of frantic negotiations by UK officials.
In a statment to the City, HSBC says the transaction “completes immediately”. The acquisition will be funded from existing resources.

The bank adds:

As at 10 March 2023, SVB UK had loans of around £5.5bn and deposits of around £6.7bn. For the financial year ending 31 December 2022, SVB UK recorded a profit before tax of £88m. SVB UK’s tangible equity is expected to be around £1.4bn. Final calculation of the gain arising from the acquisition will be provided in due course.

[SueEllen]

To add from The Guardian:

Bank of England: all depositors’ money with SVBUK is safe The sale to HSBC this morning has been taken to “stabilise SVBUK”, says the Bank of England.

The UK central bank says the deal will ensure the continuity of banking services, minimise disruption to the UK technology sector and support confidence in the financial system.

Importantly, the Bank of England and HM Treasury can confirm that all depositors’ money with SVBUK is safe and secure as a result of this transaction.

That will be a massive relief for tech companies, who feared an ‘existential threat’ to their businesses if they had lost their funds at SVB UK.

The BoE add that the deal with HSBC means SVB UK will not now be put into insolvency. It says:

SVBUK’s business will continue to be operated normally by SVBUK. All services will continue to operate as normal and customers should not notice any changes.

Customers can continue to contact SVBUK through the usual channels and borrowers should make any loan repayments to SVBUK as normal. SVBUK staff remain employed by SVBUK, and SVBUK continues to be a PRA/FCA authorised bank.

Today’s announcement supersedes the Bank’s 10 March statement that, absent any meaningful further information, it intended to apply to the Court to place SVBUK into a Bank Insolvency Procedure. Given the emergence of a credible purchaser for SVBUK the Bank has determined that using its resolution powers for stabilising failing banks is appropriate.

No other UK banks are directly materially affected by these actions, or by the resolution of SVBUK’s US parent bank. The wider UK banking system remains safe, sound, and well capitalised.

[AtW]

Oh wow all deposits are safe? Isn’t that immoral? No it fecking ain’t!



Banking collapse averted… for now

[jamesbrown]

Oh wow all deposits are safe? Isn’t that immoral? No it fecking ain’t!



Banking collapse averted… for now

Don’t be a massive cretin

Best possible outcome. No need to involve taxpayers to save VCs and other risk management idiots that cannot, er, manage risk.

[AtW]

Best possible outcome is confidence that 100% of deposits are covered, as they should be formally in law.

[Zigenare]

Best possible outcome is confidence that 100% of deposits are covered, as they should be formally in law.

You appear to advocate risk without repercussion.