UK races to minimise damage from Silicon Valley Bank collapse
British finance minister Jeremy Hunt said on Sunday he was working with Prime Minister Rishi Sunak and Bank of England Governor Andrew Bailey to “avoid or minimise damage” resulting from the chaos engulfing the UK arm of Silicon Valley Bank.
Friday’s dramatic failure of the U.S. bank SVB Financial Group (SIVB.O), which focuses on tech startups, was the biggest in the U.S. since the 2008 financial crisis.
Given the importance of the bank to some customers, its collapse could have a significant impact on British technology companies, Hunt said.
“We’ve been working at pace over the weekend, through the night,” Hunt told Sky News. “We will bring forward very soon plans to make sure people are able to meet their cashflow requirements to pay their staff.”
Hunt said efforts are focused on finding a “longer-term solution that minimises, or even avoids completely, losses to some of our most promising companies.”
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