Fearing that firms would be unable to access cash on Monday morning, Chancellor Jeremy Hunt, the Prime Minister, the Governor of the Bank of England, HSBC executives, and civil servants held panic stricken talks to find a solution.

UK tech companies who had been told they would fail now feel relieved that HSBC has stepped in to purchase the UK division of the defunct US Silicon Valley Bank (SVB). Consumers and companies who previously were unable to withdraw their money can again do so normally.

The negotiations were facilitated by the government and the Bank of England, who worked all night to assemble the arrangement without using any taxpayer funds.

According to HSBC, the UK arm of the SVB cost merely £1.

The largest failure of a US bank since 2008 occurred on Friday when US regulators shut down Silicon Valley Bank, which specialized in lending to technology companies.
Its demise shocked the tech sector because of the potential effects it could have on businesses. Some companies told the BBC that they risked going out of business if their deposits weren’t safeguarded.

The Bank of England said no other UK banks had been “materially adversely effected” by SVB’s implosion and said the banking system remained “safe, sound, and well capitalised”.