Posted on 03/12/2023 7:56:30 AM PDT by Oldeconomybuyer
The government says it is working "at pace" on a plan to prevent UK tech firms caught in the collapse of Silicon Valley Bank from running out of cash.
The Treasury said it wanted to "minimise damage to some of our most promising companies in the UK" after the US bank's failure on Friday.
Firms could start to run into problems on Monday morning without intervention.
Prime Minister Rishi Sunak, Chancellor Jeremy Hunt and Bank of England Governor Andrew Bailey "were up late last night" and have been "working through the weekend to come up with a solution" to the collapse of Silicon Valley Bank UK.
Asked whether the government would come up a solution by the time the markets open on Monday morning, Prime Minister Mr Sunak said: "The Treasury is working at pace."
More than 200 bosses of UK tech companies signed a letter addressed to Mr Hunt on Saturday calling for government intervention.
The letter, from Fintech Founders, said many financial technology firms had all of their banking with SVB "and will therefore go into receivership imminently unless preventative action is taken".
"The firms affected by the collapse of SVB serve millions of people in the UK along with businesses that are critical to our economy," the letter said.
(Excerpt) Read more at bbc.com ...
What UK tech firms are “caught” in this?
Enter a casino and think to win? People lose, don't they?
In the case of IceBank, bankers were prosecuted, if memory serves. Bankers everywhere should be liable in part, and that alone would make for less gambling. But when gamblers entrust other gamblers with their moneys and lose, they expect those of us not in the casino to make up for their losses? Hell no.
As Rowdy Yates would say “Head ‘em up, bail ‘em out!”
Meanwhile the pResident Imbecile in Chief, aka "Big Guy", is once again on vacation.
I wonder how much warning HE had to “Disappear”.
You’re right.
We will see others collapse, internationally, as the ripple-down effect takes place.
https://freerepublic.com/focus/f-chat/4137520/posts
A lot of Irish and European Union Tech Companies affected
When you deposit you money in a bank, you assume that it is ensured against theft or fraud
That principle involves trust, with the expectation of future reliability and earned interest.
A 'bank run' occurs when that trust vanishes,
especially when the CEO, President, and Board members are selling most of their bank preferred shares
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