Connect with us

Published

on

Britain’s biggest high street banks have been given a 24-hour deadline to rescue Silicon Valley Bank UK (SVB UK) from collapse as the Bank of England prepares to place it into an insolvency process.

Sky News has learnt that major UK lenders including Barclays and Lloyds Banking Group are among the parties to have been approached by the board of SVB UK over the weekend to see if an emergency takeover deal can be struck.

City sources said that a number of parties, including The Bank of London, were interested in finalising a deal.

A number of the biggest high street banks are expected to examine the prospects for a deal, although the chances of one of them intervening appeared remote.

An executive at one large UK bank said they had been given access to a data room over the weekend.

Rothschild, the investment bank, has been asked to handle the quickfire process with the permission of the Bank of England, according to one source.

Speaking to Sky News’ Sophy Ridge On Sunday programme, Chancellor Jeremy Hunt said “there is no systemic risk to our financial system” – but added “there is a serious risk to our technology and life sciences sectors”.

More on Silicon Valley Bank

“We are working at pace on a solution we will bring forward very soon plans to make sure people are able to meet their cashflow requirements, pay their staff.”

“But obviously what we want to do is to find a longer-term solution that minimises or even avoids completely losses to some of our most promising companies.”

Please use Chrome browser for a more accessible video player

‘Serious risk to tech sector’ after Silicon Valley Bank collapse

The Treasury said in a statement on Sunday: “The UK has a world leading tech sector, with a dynamic start-up and scale-up ecosystem.

“The government recognises that, given the importance of Silicon Valley Bank to its customers, its failure could have a significant impact on the liquidity of the tech ecosystem.

“The government is treating this issue as a high priority, with discussions between the governor of the Bank of England, the prime minister and the chancellor taking place over the weekend.”

Silicon Valley Bank's headquarters are based in California
Image:
Silicon Valley Bank’s headquarters are based in California

Read more:
UK tech firms at ‘serious risk’ from SVB failure, warns chancellor
Bank of London weighs rescue bid for UK arm of Silicon Valley Bank
Biggest failure since 2008 financial crisis as US regulators close bank and seize assets

The implosion of SVB’s US-listed parent company, which has been taken into government control, represents one of the biggest global banking collapses since the financial crisis of 2008.

UK depositors stand to receive up to £85,000 as part of the resolution of the British arm of SVB, sparking fears about the fate of substantial amounts of funding in the start-up community.

On Saturday, dozens of early-stage companies wrote to Mr Hunt, to warn of “an existential threat to the UK tech sector”.

In a letter seen by Sky News, founders including those from Adzuna, Curve and Thriva called on Mr Hunt to intervene.

“The majority of the most exciting and dynamic tech businesses bank with SVB and have no or limited diversity in where their deposits are held,” the draft letter said.

“This weekend the majority of us as tech founders are running numbers to see if we are potentially technically insolvent.

“The impact of this is far greater than our individual businesses.

“The Bank of England’s assessment that SVB going into administration would have limited impact on the UK economy displays a dangerous lack of understanding of the sector and the role it plays in the wider economy, both today and in the future.”

The founders warned Mr Hunt, who will deliver his Budget statement on Wednesday, that the collapse of SVB UK would “cripple the sector and set the ecosystem back 20 years”.

“Many businesses will be sent into involuntary liquidation overnight,” they wrote.

“Many other businesses, both in the tech sector and the wider economy – the customers and suppliers of these businesses – will be negatively impacted by these businesses going bankrupt.”

Interpath Advisory is being lined up to handle the insolvency process in the UK.

Continue Reading

UK

Government accused of ‘cover-up’ over collapse of China spy trial

Published

on

By

Government accused of 'cover-up' over collapse of China spy trial

Kemi Badenoch has accused the government of a “cover-up” over the collapse of a China spy trial.

The Tory leader said there were a “lot of questions to answer” as to why the trial involving two men did not proceed.

Politics latest: Starmer pledges support for Middle East peace plan

It is expected that ministers will have to answer questions about the case today, as parliament returns from recess.

In particular, there are questions around the role played by Jonathan Powell, the prime minister’s national security adviser, in the trial not going ahead.

Ministers have repeatedly said Mr Powell played no role in the decisions that led to the collapse of the trial – but Ms Badenoch said she was “worried that there is a cover up taking place”.

Speaking to broadcasters in Grantham today, Ms Badenoch said: “We will be making sure that we ask questions in parliament about exactly who knew what, where and when, but Jonathan Powell certainly has questions to answer.”

More on China

She refuted suggestions from ministers that Mr Powell had had no involvement in the collapse of the trial, saying: “We are seeing information that contradicts that.

“That is why it is very important that the government come clean about who knew what, where, when, and why this has happened.”

Former parliamentary researcher Christopher Cash, 30, of Whitechapel, east London, and teacher Christopher Berry, 33, of Witney, Oxfordshire, were charged with passing politically sensitive information to a Chinese intelligence agent between December 2021 and February 2023. They have both denied the allegations.

👉Listen to Politics at Sam and Anne’s on your podcast app👈

Over the past week, Sir Keir Starmer, his ministers and Mr Powell have faced accusations they were involved in the trial being dropped.

Last week Stephen Parkinson, the director of public prosecutions and the head of the Crown Prosecution Service, took the unusual step of sending MPs a letter to claim that the government repeatedly refused to provide evidence that China represented a national security threat at the time of the allegations.

Mr Parkinson said the CPS had tried “over many months” to get the evidence it needed to carry out the prosecution, but it had not been forthcoming from the government.

Downing Street also said today it was “entirely false” to suggest the government influenced the collapse of the case because of concerns Beijing could withdraw investment in the UK.

Asked about reports in the Sunday Times which suggested a decision was taken high up in government to abandon the case, the prime minister’s official spokesman told reporters: “It is entirely false. The CPS (Crown Prosecution Service) decision to drop the case was entirely a matter for the CPS.

“There was no role for any member of this government, no minister, or special adviser, to take any decision in relation to this case. That is entirely for the CPS.”

The government had argued that China needed to have been branded an “enemy” during the period it was accused of spying for the prosecution to go ahead – effectively blaming the previous Conservative government.

The Conservatives claim the government’s rationale is an excuse because it had said many times Beijing was a national security threat while it was in government.

Read more from Sky News:
Dozens dead after bus crash in South Africa
Man charged with stalking after allegedly targeting Lib Dem leader

The prime minister has said he wanted to be “absolutely clear no ministers were involved” in any decisions relating to the case, but notably sidestepped answering whether Mr Powell was involved.

Bridget Phillipson, the education secretary, yesterday gave the government’s most definitive answer yet about whether Mr Powell was part of the reason the case was dropped weeks before they were set to go on trial.

Asked on Sunday Morning with Trevor Phillips if she could assure him that the national security adviser played no role in the decision, Ms Phillipson said: “Yes, I can give that assurance.

“We’re very disappointed that the CPS were not able to take forward the prosecution.”

The Liberal Democrats have called on the government to hold an inquiry into the collapse of the case.

Calum Miller, the party’s foreign affairs spokesman, said the case had “exposed appalling gaps in our government’s ability and willingness to challenge China’s espionage efforts”.

“We cannot let the government sweep this case under the rug in its efforts to cosy up to President Xi. An inquiry – preceded by rigorous scrutiny through parliament – would provide the answers the public deserves.”

Continue Reading

UK

Tommy Robinson refused to give phone pin to police as he drove his Bentley to Benidorm, court hears

Published

on

By

Tommy Robinson refused to give phone pin to police as he drove his Bentley to Benidorm, court hears

Tommy Robinson refused to hand over his phone pin when police stopped his Bentley on the way to Benidorm, a court has heard.

He allegedly told officers “Not a chance, bruv” and said he was a journalist when they pulled him aside at the Channel Tunnel at Folkestone in July 2024.

Robinson, real name Stephen Yaxley-Lennon, is accused of “frustrating” counter-terrorism powers by refusing to give access to the phone.

He denies the charge.

The right-wing political activist was flanked by security guards as he arrived at Westminster Magistrates Court for the opening of the trial on Monday.

The 42-year-old faces three months in prison and/or a £2,500 fine if found guilty.

Robinson had £13,000 and 1,900 euros on him when he was stopped and told police he was going to Benidorm in Spain for a few days, said prosecutor Jo Morris.

More on Tommy Robinson

He allegedly refused to give the pin as he claimed the phone had sensitive “journalist material” on it.

He’s said to have told police: “It’s my work, I’m a journalist,” claiming it contained information about “vulnerable girls”.

The court heard Robinson was stopped in his silver Bentley SUV because he gave “short, vague replies” about what he was doing and “made no eye contact”.

PC Mitchell Thorogood told the court it was also “unusual” he bought tickets on the day rather than in advance and was in an expensive car not registered in his name.

Pic: PA
Image:
Pic: PA

When police took Robinson into an interview room and demanded his phone, he allegedly told them: “Not a chance bruv… you look like a c*** so you ain’t having it.”

Officers said they recognised Robinson when they stopped him and his lawyer, Alisdair Williamson KC, suggested the stop may have been “discriminatory” against his political beliefs.

Police can stop anyone at a UK port and hold them for six hours if they suspect they may be involved in planning or committing acts of terrorism.

They are legally obliged to answer questions and must give access to their electronic devices or face a criminal charge.

In a video on X before the hearing, Robinson said Elon Musk had “picked up the legal bill” for “this absolute state persecution”.

The case comes a month after Robinson led a huge rally in central London under the banner ‘Unite the Kingdom’.

The trial continues.

Continue Reading

UK

Man arrested over 1994 murder of 13-year-old Lindsay Rimer

Published

on

By

Man arrested over 1994 murder of 13-year-old Lindsay Rimer

A man has been arrested on suspicion of the 1994 murder of 13-year-old Lindsay Rimer.

Police said the man was arrested at an undisclosed prison where he is serving a sentence for other offences.

The man, who is being interviewed today and tomorrow, is expected to be bailed and returned to prison while enquires continue.

Officers are also interviewing a number of potential witnesses in the Hebden Bridge and wider Halifax area.

Lindsay left her home to buy a box of corn flakes late during the evening of 7 November, 1994, but didn’t return home.

Her body was then found in a canal close to her home six months later.

Following today’s arrest, senior investigating officer, detective chief inspector James Entwistle, said: “We remain very firmly committed to doing everything we can to get justice for Lindsay, and to give her family the answers they still so desperately need after all these years.

Lindsay Rimer's body was found in a canal close to her home six months later. Pic: West Yorkshire Police
Image:
Lindsay Rimer’s body was found in a canal close to her home six months later. Pic: West Yorkshire Police

“The arrest we have made today comes as a result of our continued focus on progressing the investigation.

“We are keeping Lindsay’s family updated and, while we appreciate the understandable public interest that today’s arrest will bring, we do not anticipate any immediate developments at this stage.

“Although it is now more than thirty years since Lindsay was murdered, we remain convinced there is someone out there who has vital information that could finally help to ease her family’s pain, and we urge them do the right thing and tell us what they know.”

Anyone with further information has been urged to contact police by calling 101 quoting Operation Posemill, or sending a text or voicemail to 07707147314.

Continue Reading

Trending