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It should be noted that, if I understand the situation correctly, the "SVB" with a UK banking licence was a subsidiary, and it was solvent when sold because the
by alexchamberlain 3y ago
It should be noted that, if I understand the situation correctly, the "SVB" with a UK banking licence was a subsidiary, and it was solvent when sold because the parent company went under.
- blitzar 3y ago12 Mar 2023 — The Bank of England (the BoE) will apply to put the UK arm of Silicon Valley Bank (SVB UK) into Bank Insolvency, which is a modified version of liquidation under Part 2 of the Banking Act 2009, on Sunday 12 March 2023 unless a buyer can be found for SVB UK’s business and assets. When Parent Co goes bust Child Co credit lines go to zero. Even in the UK where ringfencing and regulation makes it very difficult to have more liabilities than assets (as happened with parent co), banks still have to borrow overnight / short term to fund longer term lending. If you cant borrow from the market you are in trouble.