The British government seeks to use Middle East funds to acquire the British subsidiary of Silicon Valley Bank

It is reported that the British government is trying to promote the acquisition of the British subsidiary of Silicon Valley Silver to prevent the impact from spreading to the entire technology industry, according to the Financial Times. A wealthy Middle East buyer has expressed interest. British technology company executives have been lobbying the government to mitigate the losses caused by their inability to use the bank’s account on Monday. Legally, the British subsidiary of Silicon Valley Bank is independent of the parent company headquartered in California, which was closed by the US regulators on the same day. This means that there may be two different buyers acquiring the banking sector in the United States and the United Kingdom, although potential bidders may wish to acquire both banking sectors at the same time. Several people familiar with the British bidding process said that a Middle East buyer was one of the main bidders. An insider said that as of last night, the “leading white knight” was a company headquartered in the United Arab Emirates. Rothschild is leading the search for potential buyers for the British entity, but Rothschild declined to comment. People familiar with the matter said that when the Bank of England announced on Friday that the British subsidiary of Silicon Valley Bank was insolvent, the company had nearly 7 billion pounds of deposits.

Interpretation of this information:

The British government is reportedly working to promote the acquisition of the British subsidiary of Silicon Valley Bank to prevent the impact of its closure from affecting the entire technology industry. A Middle East buyer has expressed interest, and British technology company executives are lobbying the government to mitigate their losses from the inability to use their bank account following the bank’s closure by US regulators. The British subsidiary is independent of the parent company and potential bidders may acquire both the US and UK banking sectors, although a Middle East buyer is currently the leading bidder according to insiders. Rothschild is leading the search for potential buyers but declined to comment. As of the Bank of England’s announcement on Friday, the British subsidiary of Silicon Valley Bank held nearly £7bn in deposits.