Key Highlights :
1. The government is drawing up plans for an emergency cash lifeline for tech firms hit by the collapse of Silicon Valley Bank UK (SVB UK).
2. Jeremy Hunt said the issue was a “high priority” for the government, and that he had been locked in late-night meetings with the prime minister, Rishi Sunak, and the Bank of England governor, Andrew Bailey, in an attempt to avoid further fallout from the collapse of SVB UK’s American parent company on Friday.
3. Sunak did not rule out an emergency fund being set up to guarantee deposits. He said on Sunday the suggestion was “speculation” but added when asked about the possibility: “We’re working through it; the Treasury is in touch.”
4. Speaking to journalists on his way to California for a meeting with the leaders of Australia and the US, the prime minister stressed he did not think there was a “systemic risk” in the UK caused by SVB’s collapse.
5. Sunak acknowledged the “anxiety and the concerns” among customers of SVB UK, and when quizzed on whether a solution would be in place by the time the markets opened on Monday morning, stressed the Treasury was working “at pace”.
6. The prime minister also threw his weight behind the Bank of England governor. Asked if he was satisfied Bailey was overseeing a robust regulatory environment for UK banks, Sunak said: “Yes.”
7. Silicon Valley Bank – which was the 16th largest lender in the US –
The UK government is drawing up plans for an emergency cash lifeline for tech firms hit by the collapse of Silicon Valley Bank UK (SVB UK), as the chancellor warned the sector was at “serious risk”.
Continue Reading at Source : theguardian