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How is this happening? Wasn’t the UK bank meant to have a separate balance sheet per regulations?
by spacebanana7 4y ago
How is this happening? Wasn’t the UK bank meant to have a separate balance sheet per regulations?
- tough 4y agoProbably their UK customers aren't taking them at face value and being precautious and thus causing another cascading bank run in the UK unrelated branch (same name, still, which would make it possible) problem is if monday this shit show ain't fixed and this spreads to any other smaller banks in the us left
- spacebanana7 4y agoThe Bank of England is seeking an insolvency procedure [1] which I figure implies there’s a problem with the UK balance sheet beyond short term issues with liquidity [1] https://www.reuters.com/business/finance/bank-england-puts-uk-arm-silicon-valley-bank-into-resolution-ft-2023-03-10/ https://www.reuters.com/business/finance/bank-england-puts-u...
- roundandround 4y agoI think they would choose this method to wind it down independent of whether it will ultimately be able to pay out everything. A Bank in the UK being run by the FDIC is probably not what they want.
- agilob 4y agoIsn't that the case that when a HQ of a company/parent company files for bankruptcy, then all UK and EU branches must also immidietly close?