UK government cracks down on crypto cold calls to combat fraudThe Bank of London, a global clearing institution, has submitted a formal proposal to acquire the Silicon Valley Bank’s U.K. subsidiary. A consortium of private equity firms is leading the purchase. The proposal has been submitted for approval to His Majesty’s Treasury, the Prudential Regulation Authority of the Bank of England, and the Board of Silicon Valley Bank U.K.
Furthermore, other U.K. financial institutions, including SoftBank-owned lender OakNorth Bank and Abu Dhabi Investment vehicle ADQ, are reviewing potential acquisitions of SVB’s arm. Additionally, ADQ is reportedly also interested in the deal.
British authorities have drafted an emergency plan to rescue startups and tech companies affected by the collapse of Silicon Valley Bank (SVB). Prime Minister Rishi Sunak said the government is urgently working on a scheme to provide these businesses with a lifeline regarding cash. A statement from the U.K. Treasury confirmed they would take immediate action to meet the short-term operational and cash flow needs of Silicon Valley Bank U.K. customers.
On March 10, the Bank of England (BoE) announced the suspension of operations of SVB branches due to its “limited presence” in the U.K. and lack of “critical functions” within the country’s financial system. This prompted over 200 founders and CEOs from U.K. tech companies to sign a letter calling for preventative action, as many of their fintech firms relied on banking services provided by SVB and were now at risk of receivership.
In response to this development, Treasury Secretary Janet Yellen revealed in an interview that the U.S. regulators and White House officials are collaborating over the weekend to assess the situation and look into measures to protect investors without resorting to a significant bailout.
The U.S. Federal Deposit Insurance Corporation (FDIC) has reportedly initiated an auction process for Silicon Valley Bank on the night of March 11, with bids expected to be accepted within a few hours before the process closes this Sunday.
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