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Bank of London weighs rescue bid for Silicon Valley Bank's UK arm - Sky News

Published 03/11/2023, 08:05 AM
Updated 03/11/2023, 02:35 PM
© Reuters. A man puts a sign on the door of the Silicon Valley Bank as an onlooker watches at the bank’s headquarters in Santa Clara, California, U.S. March 10, 2023. REUTERS/Nathan Frandino

(Reuters) -British clearing bank The Bank of London is considering a rescue bid for the UK arm of collapsed U.S. bank Silicon Valley Bank, Sky News reported on Saturday.

The British bank has appointed investment bank Perella Weinberg Partners to advise it on its interest in Silicon Valley Bank UK Limited (SVB UK), the report said, citing a source familiar with the matter.

The Bank of London declined to comment on the report, while SVB did not immediately respond to a Reuters' request for comment.

© Reuters. A man puts a sign on the door of the Silicon Valley Bank as an onlooker watches at the bank’s headquarters in Santa Clara, California, U.S. March 10, 2023. REUTERS/Nathan Frandino

The news of the British bank's bid interest comes a day after the Bank of England said it was seeking a court order to place SVB UK into an insolvency procedure, after U.S. regulators took over its parent company SVB Financial Group earlier on Friday.

The rout in SVB's stock, which began on Thursday, has spilled over into other U.S. and European banks. U.S. banks have lost over $100 billion in stock market value and European banks have shed another $50 billion in value over the past two days, according to a Reuters calculation.

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