Thursday, February 22, 2024

Bank of London submits proposal for SVB’s UK arm

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March 12 (Reuters) – Bank of London has tabled an offer to Silicon Valley Bank UK, SVB’s subsidiary, the company said on Sunday, adding that it had sent the proposals to British authorities, including the Treasury and the Bank of England.

Bank of London, a clearing bank, is leading a consortium of investors including private equity funds, which has submitted what it described as formal proposals.

“Silicon Valley Bank cannot be allowed to fail given the vital community it serves,” Bank of London co-founder and CEO Anthony Watson said in a statement.

“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,” he said.

Unlike other financial institutions, Bank of London does not lend and holds all of its deposits with the Bank of England.

Advisory firm Rothschild & Co is exploring options for the subsidiary, as insolvency looms, two people familiar with the discussions told Reuters on Saturday.

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The BoE has said it is seeking a court order to place the UK arm into insolvency.

Reporting by Akriti Sharma in Bengaluru and Pablo Mayo Cerqueiro in London, Editing by John O’Donnell

Our Standards: The Thomson Reuters Trust Principles.

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