US and UK bid to stem fallout from Silicon Valley Bank collapse

Silicon Valley Bank UK has been sold to HSBC in a bid to prevent a potential banking crisis after the bank\’s historic failure. The UK Treasury and the Bank of England announced the purchase of the bank, guaranteeing the safety of £6.7bn of deposits. The purchase came after UK officials worked tirelessly over the weekend to seek a buyer for the UK subsidiary of the California-based bank. The collapse of Silicon Valley Bank is the second-largest bank failure in history. US regulators also worked across the weekend, but their efforts to find a buyer for the bank appeared to have failed by Sunday. Signature Bank, based in New York, also failed and was seized on Sunday. The bank had assets of over $110bn, making it the third-largest bank failure in US history. Analysts have said that the US Federal Reserve’s recent expansionary emergency lending programme should help calm the financial markets. The scheme allows banks to borrow money from the Federal Reserve to assure customers that they will have access to their accounts 24/7.

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