Chancellor of the Exchequer Jeremy Hunt’s budget preparations have been upended by the rush to limit damage from the collapse of Silicon Valley Bank as Treasury officials race to finalize a support package for the UK’s tech sector.
As US authorities race to stem the fallout from the failure of California’s Silicon Valley Bank, an array of shadow lenders are stepping in to offer liquidity to the companies and funds whose cash has suddenly become trapped — at costs that ranged from moderate premiums to distressed prices.
Traders are steeling themselves for the risk of more turbulence after the biggest US bank collapse since the 2008 financial crisis sent shockwaves through markets.
Banks are in talks with the UK Treasury about a potential plan to take on depositors from SVB Financial Group’s British arm in a bid to avoid widescale disruption in the tech sector and to try to calm markets.
Real Madrid will join a legal case against FC Barcelona that says the club paid millions of euros to a former referee to influence the outcome of its soccer matches.
The Federal Reserve is considering easing the terms of banks’ access to its discount window, giving firms a way to turn assets that have lost value into cash without the kind of losses that toppled SVB Financial Group.
The best solution for resolving the failure of SVB Financial Group’s Silicon Valley Bank “would be a merger occurring today,” said Jefferies Financial Group Inc. Chief Executive Officer Rich Handler, who said he doesn’t see a repeat of the 2008 global financial crisis emerging from the past week’s events.
OurCrowd, a SoftBank Group Corp-backed Israeli venture capital firm that provides a crowd-funding platform for investors, said it transferred “almost all” of its money out of Silicon Valley Bank before the lender failed — and more than 85% of the portfolio companies it has been in contact with have “minimal to no exposure.”
Royal Group, an investment firm controlled by a top Abu Dhabi royal, is considering a possible takeover of the UK arm of Silicon Valley Bank following its collapse last week, according to people familiar with the matter.
US regulators are racing against the clock to find solutions for failed Silicon Valley Bank while Treasury Secretary Janet Yellen said officials are focusing on protecting depositors, as officials seek to avoid a wider bank run.
