Andrew Bailey: SVB collapse was the 'fastest passage from health to death since Barings'

Addressed Credit Suisse

Eve Maddock-Jones
clock • 5 min read

Governor of the Bank of England Andrew Bailey has called the recent downfall of Silicon Valley Bank one of the quickest in history, stating that it was the “fastest passage from health to death since Barings” in the mid-1990s.

Providing evidence at the Treasury Select Committee to discuss the sale of Silicon Valley Bank UK to HSBC following the collapse of its parent company, Bailey agreed with committee chair Harriett Baldwin that the events had come out of "left field". SVB failed on 10 March, making it the second biggest US banking collapse in history, after clients became concerned the bank could not cover its deposits and withdrew billions in the space of a day. The bank has now been bought by fellow US regional bank First Citizens Bank. By 13 March, its UK wing had been sold to HSBC for £1, in a de...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on UK

Quilter Investors' Lindsay James: Can the UK ever emerge from its permafrost?
UK

Quilter Investors' Lindsay James: Can the UK ever emerge from its permafrost?

Post-Budget reaction

Lindsay James
clock 31 October 2024 • 4 min read
IMF backs Rachel Reeves' 'sustainable' £40bn tax hikes
UK

IMF backs Rachel Reeves' 'sustainable' £40bn tax hikes

Amid tentative support from business

Linus Uhlig
clock 31 October 2024 • 3 min read
Autumn Budget 24: AIM rallies following introduction of 20% IHT rate
UK

Autumn Budget 24: AIM rallies following introduction of 20% IHT rate

Rather than full 40%

Cristian Angeloni
clock 30 October 2024 • 2 min read
Trustpilot