London Daily

Focus on the big picture.
Wednesday, Oct 21, 2026

Silicon Valley Bank: Offer made for UK arm of failed US lender

Silicon Valley Bank: Offer made for UK arm of failed US lender

An offer has been made for the UK arm of Silicon Valley Bank (SVB) after it collapsed into administration, putting customer deposits at risk.

A consortium of investors led by The Bank of London, a UK clearing bank, has submitted a formal bid to the Treasury.

The government has been working "at pace" on a plan to support UK tech firms affected by the collapse of SVB.

There have been warnings some could struggle to pay their staff from Monday without intervention.

Earlier, Chancellor Jeremy Hunt told the BBC there was no risk to the UK's financial system as a whole from the collapse of SVB, but "there is a serious risk to some of our most promising companies in technology and life sciences".

Mr Hunt said he had been working with the prime minister and Bank of England governor "through the weekend to come up with a solution", and the government would bring forward a plan in the "next few days".

However, Rachel Reeves, Labour's shadow chancellor, urged the government to do more, warning UK start-ups needed to pay staff and maintain investor confidence.

"We need, tomorrow morning, to hear from the government, how they are going to protect firms," she said.

SVB, which focuses on lending to technology companies, was shut down by US regulators on Friday in what was the largest failure of a US bank since 2008.

The bank's UK subsidiary will be put into insolvency from Sunday evening. This will allow individual depositors to be paid up to £85,000 from the UK's deposit insurance scheme - however many have far more money than this saved with the bank.

The government is looking for a buyer for the UK arm, with other lenders including Barclays and Oaknorth said to be mulling bids.

As a clearing bank, the Bank of London does not lend and holds all of its deposits with the Bank of England. Its boss Anthony Watson said: "Silicon Valley Bank cannot be allowed to fail given the vital community it serves.

"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."

Toby Mather, founder of Lingumi, says his firm is highly exposed


More than 200 bosses of UK tech companies signed a letter addressed to Mr Hunt on Saturday calling for government intervention.

The letter, from Fintech Founders, said many financial technology firms did all of their banking with SVB "and will therefore go into receivership imminently unless preventative action is taken".

"The firms affected by the collapse of SVB serve millions of people in the UK along with businesses that are critical to our economy," the letter said.

"The cost of inaction here means that these firms could fail in the short-term and your technology growth ambitions will fail in the long-term."

Toby Mather, chief executive and co-founder of Lingumi, an education technology start-up, told the BBC his business was very exposed.

"85% of our cash is held in Silicon Valley Bank.. [So this] is a really existential threat to us because I've got to pay my employees and they've got kids and mortgages and so on."

One source in a tech firm told the BBC the situation could be "pretty terminal" for many UK start-ups.

"This Monday, at least 200 firms employing tens of thousands of people will find they can't pay their staff or suppliers because the bank they had an account with has gone bust," the source said.

Between 30% and 40% or UK start-ups employing up to 50,000 people could be affected by the collapse, the source added.

Michael Moore, director general of the British Private Equity and Venture Capital Association, said this was an "urgent matter" and that "help is needed by tomorrow [Monday]" for tech firms and entrepreneurs.

SVB collapsed in the US after failing to raise $2.25bn (£1.9bn) to plug a loss from the sale of assets, mainly US government bonds, that were affected by higher interest rates.

Its troubles prompted a run on the bank in the US and sparked investor fears about the general state of the banking sector.

US Treasury Secretary Janet Yellen said on Sunday she was working closely with regulators to protect US depositors, but she was not considering a bailout.


What went wrong at Silicon Valley Bank?


Silicon Valley Bank specialised in lending to early-stage businesses, and the company served nearly half of US venture-backed technology and healthcare companies that listed on stock markets last year.

The firm, which started as a California bank in 1983, expanded rapidly over the last decade. It employs more than 8,500 people globally, with most of its operations in the US.

But it has been under pressure as higher rates make it harder for start-ups to raise money through private fundraising or share sales. More clients were withdrawing deposits in a trend that snowballed last week.

Silicon Valley Bank UK, which has stopped making payments or accepting deposits, is officially expected to go into insolvency on Sunday evening.

Newsletter

Related Articles

0:00
0:00
Close
Housebuilding Across Scotland Plummets to Eleven-Year Low Despite Government Pledges to Tackle National Housing Emergency
Greggs Announces Factory Closures Across Northern England and Scotland Affecting Seven Hundred Forty Jobs
United Kingdom and Singapore Conclude Eleventh Financial Dialogue in Singapore to Deepen Cooperation on Digital Finance and Capital Markets
Energy Security and Net Zero Committee Urges Government to Shift Policy Costs to Gas Bills and Tap Windfall Profits to Lower Consumer Prices
British Broadcasting Corporation Announces Major Cost-Cutting Overhaul to Close Linear Broadcast Services for Television Channels BBC Three and BBC Scotland Alongside Digital Radio Station BBC Radio Four Extra
London Capital Markets Face Renewed Scrutiny After High-Profile Offerings Underperform Post-Listing
Green Party Wins Historic First Westminster Parliamentary By-Election in Gorton and Denton
Environment Secretary Emma Reynolds Unveils Sweeping Regulatory Overhaul for English Water Industry
United Kingdom Health Security Agency Confirms Thirty-Four Cases in Kent Meningitis Outbreak
Ministry of Defence Prepares Heat Pump Subsidy Cuts to Fund Urgent Military Modernization
British and European Union Officials Schedule Long-Awaited Bilateral Leaders Summit for November Twentieth
Bank of England Governor Andrew Bailey Urges Strict Fiscal Credibility to Protect British Bond Markets
United Kingdom Inflation Rises to Three Point One Percent Driven by Escalating Fuel Costs
Profit Warnings Among London-Listed Companies Reach Two-Year High Amid Global Energy Shocks
Chancellor John Healey Signals Targeted Tax Changes on Banks and London Corporate Offices Ahead of Budget
British Government Reallocates Twenty-Five Per Cent of International Climate Finance to Global Biodiversity Projects
Initial British Carbon Border Taxes Set to Undercut Parallel European Union Tariffs on Industrial Imports
Whitehall Prepares National Zero-Interest Loan Initiative to Accelerate Domestic Heat Pump and Solar Adoption
European Union Offers British Automakers Access to Hybrid Vehicle Trade Protections Subject to Strict Regulatory Alignment
British Probation Officers Threaten Widespread Industrial Action After Rejecting Five Per Cent Government Pay Offer
Microsoft Abandons Major British Artificial Intelligence Data Centre Citing Severe National Grid Power Constraints
United Kingdom Inflation Accelerates to Three Point Four Per Cent Ahead of Chancellor John Healey's Inaugural Autumn Budget
Surging Cloned Number Plates Severely Complicate Traffic Enforcement and Police Investigations
Mounting Opposition Challenges Planned Rollout of Autonomous Taxis Across London
Influential Think Tank Urges Rejoining European Union to Navigate Geopolitical Crises
Government Review Recommends Slashing Benefits to Fund Youth Employment Initiatives
Senior Minister Shabana Mahmood Seeks New Law Enforcement Pact With European Union
Airbus Executive Warns Britain Risks Losing Crucial Role in European Space Industry
Exorbitant Electricity Costs Push British Steelmakers to Worst Competitive Position in Three Years
British Food and Beverage Exports to European Union Collapse by Over a Third Since Brexit
Up to Twenty English Maternity Units Face Impending Closure Due to Safety and Staffing Crises
Government Declares Severe Drought Across Southern England Following Record Dry Spell
Corporate Profit Warnings Reach Two-Year High Amid Middle East Conflict and Rising Costs
International Monetary Fund Warns Chancellor John Healey Against Proposed Bank Tax Raid
Northern Ireland Secures Favorable Agricultural Export Agreement with European Union
Scottish Government Approves Major Offshore Floating Wind Farm Near Aberdeenshire
High Speed Two Rail Project Faces Three Billion Pound Cost Escalation on Initial Phase
National Health Service Warns of Winter Capacity Crisis Across English Hospitals
Tata Steel Confirms Two Thousand Job Cuts at Port Talbot to Fund Green Transition
Global Microchip Developer Announces Three Billion Pound Semiconductor Plant in Cambridge
United Kingdom Artificial Intelligence Safety Institute Proposes Mandatory Licensing for Generative Models
United Kingdom Commits Additional Long-Range Weapons and Air Defenses to Ukraine
British Chancellor Overhauls Infrastructure Financing to Bypass Borrowing Constraints
Bank of England Holds Benchmark Interest Rate at Four Point Five Percent
First Minister Rhun ap Iorwerth Confirms Constitutional Discussions Over Welsh Independence During Initial Bilateral Call with Prime Minister
Labour Party Instructs Local Council Groups to Sever Power-Sharing Accords with Green Party Over New Controversial Policy Positions
Institute for Fiscal Studies Warns of Thirty-Five Billion Pound Fiscal Gap Ahead of Chancellor John Healey Upcoming Autumn Budget
House of Lords Backs Landmark Legislative Amendment to Decriminalize Abortion Across England and Wales
United Kingdom Defence Secretary Wes Streeting Travels to Pentagon for High-Level Strategic Talks Amid Escalating Tensions Over Ukraine and United States Policy Shifts
Bank of England and International Monetary Fund Officials Issue Urgent Warnings Regarding Potential Artificial Intelligence Financial Market Shocks
×