Questions remain after the Silicon Valley Bank saga showed the financial system remains vulnerable to unexpected shocks. But here's the story of how a hidden effort went on throughout the weekend to avoid disaster for the UK tech sector.
Founders and executives began to pull money out of the US bank, and so began a bank run, with customers pulling their deposits out rapidly - both in America and, as news of the bank's travails spread - in the UK too.While the UK wing of SVB was far smaller than its American parent the speed of its collapse was nonetheless breathtaking.
That was when the Bank of England intervened and took control: with its deposit base having nearly halved in the space of just over 24 hours , it was clear that SVB UK couldn't survive on its own anymore. The first was to sell SVB UK in its entirety to another bank - ideally a British one, regulated in London.
Officials made a terse public announcement along those lines, and then they got to work trying to find a buyer.So began a long weekend at the Bank, and the biggest test yet of the"resolution" system put into place following the 2008 crisis, which promised to find a way to neatly wind up a bank in the event of collapse.
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