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”.
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“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.”
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‘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.”
Image: Silicon Valley Bank’s headquarters are based in California
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.
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.
MasterChef presenter John Torode will no longer work on the show after an allegation he used an “extremely offensive racist term” was upheld, the BBC has said.
His co-host Gregg Wallace was also sacked last week after claims of inappropriate behaviour.
On Monday, Torode said an allegation he used racist language was upheld in a report into the behaviour of Wallace. The report found more than half of 83 allegations against Wallace were substantiated.
Torode, 59, insisted he had “absolutely no recollection” of the alleged incident involving him and he “did not believe that it happened,” adding “racial language is wholly unacceptable in any environment”.
Image: John Torode and Gregg Wallace in 2008. Pic: PA
In a statement on Tuesday, a BBCspokesperson said the allegation “involves an extremely offensive racist term being used in the workplace”.
The claim was “investigated and substantiated by the independent investigation led by the law firm Lewis Silkin”, they added.
“The BBC takes this upheld finding extremely seriously,” the spokesperson said.
“We will not tolerate racist language of any kind… we told Banijay UK, the makers of MasterChef, that action must be taken.
“John Torode’s contract on MasterChef will not be renewed.”
Australian-born Torode started presenting MasterChef alongside Wallace, 60, in 2005.
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Why Gregg Wallace says he ‘will not go quietly’
A statement from Banijay UK said it “takes this matter incredibly seriously” and Lewis Silkin “substantiated an accusation of highly offensive racist language against John Torode which occurred in 2018”.
“This matter has been formally discussed with John Torode by Banijay UK, and whilst we note that John says he does not recall the incident, Lewis Silkin have upheld the very serious complaint,” the TV production company added.
“Banijay UK and the BBC are agreed that we will not renew his contract on MasterChef.”
Earlier, as the BBC released its annual report, its director-general Tim Davie addressed MasterChef’s future, saying it can survive as it is “much bigger than individuals”.
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BBC annual report findings
Speaking to BBC News after Torode was sacked, Mr Davie said a decision is yet to be taken over whether an unseen MasterChef series – filmed with both Wallace and Torode last year – will be aired.
“It’s a difficult one because… those amateur chefs gave a lot to take part – it means a lot, it can be an enormous break if you come through the show,” he added.
“I want to just reflect on that with the team and make a decision, and we’ll communicate that in due course.”
Mr Davie refused to say what the “seriously racist term” Torode was alleged to have used but said: “I certainly think we’ve drawn a line in the sand.”
In 2022, Torode was made an MBE in the Queen’s Birthday Honours, for services to food and charity.
An inquiry into the case of a hospital worker who sexually abused dozens of corpses has concluded that “offences such as those committed by David Fuller could happen again”.
It found that “current arrangements in England for the regulation and oversight of the care of people after death are partial, ineffective and, in significant areas, completely lacking”.
Phase 2 of the inquiry has examined the broader national picture and considered if procedures and practices in other hospital and non-hospital settings, where deceased people are kept, safeguard their security and dignity.
During his time as a maintenance worker, he also abused the corpses of at least 101 women and girls at Kent and Sussex Hospital and the Tunbridge Wells Hospital before his arrest in December 2020.
His victims ranged in age from nine to 100.
Phase 1 of the inquiry found he entered one mortuary 444 times in the space of one year “unnoticed and unchecked” and that deceased people were also left out of fridges and overnight during working hours.
‘Inadequate management, governance and processes’
Presenting the findings on Tuesday, Sir Jonathan Michael, chair of the inquiry, said: “This is the first time that the security and dignity of people after death has been reviewed so comprehensively.
“Inadequate management, governance and processes helped create the environment in which David Fuller was able to offend for so long.”
He said that these “weaknesses” are not confined to where Fuller operated, adding that he found examples from “across the country”.
“I have asked myself whether there could be a recurrence of the appalling crimes committed by David Fuller. – I have concluded that yes, it is entirely possible that such offences could be repeated, particularly in those sectors that lack any form of statutory regulation.”
Sir Jonathan called for a statutory regulation to “protect the security and dignity of people after death”.
After an initial glance, his interim report already called for urgent regulation to safeguard the “security and dignity of the deceased”.
On publication of his final report he describes regulation and oversight of care as “ineffective, and in significant areas completely lacking”.
David Fuller was an electrician who committed sexual offences against at least 100 deceased women and girls in the mortuaries of the Kent and Sussex Hospital and the Tunbridge Wells Hospital. His victims ranged in age from nine to 100.
This first phase of the inquiry found Fuller entered the mortuary 444 times in a single year, “unnoticed and unchecked”.
It was highly critical of the systems in place that allowed this to happen.
His shocking discovery, looking at the broader industry – be it other NHS Trusts or the 4,500 funeral directors in England – is that it could easily have happened elsewhere.
The conditions described suggest someone like Fuller could get away with it again.
BBC director-general Tim Davie has said MasterChef can survive its current scandal as it is “much bigger than individuals” – but the corporation must “make sure we’re in the right place in terms of the culture of the show”.
After the report was published, Wallace, 60, said he was “deeply sorry” for causing any distress, and never set out to “harm or humiliate”.
Torode, 59, said he had “no recollection of the incident” and said he “did not believe that it happened,” and said he was “shocked and saddened by the allegation”.
Mr Davie said the BBC’s leadership team would not “tolerate behaviour that is not in line with our values,” while BBC chair Samir Shah acknowledged there were still pockets within the broadcaster where “powerful individuals” can still “make life for their colleagues unbearable”.
They said several BBC staff members had been dismissed in the last three months, following an independent review into workplace culture.
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Wallace, who was sacked from MasterChef last week, is not included in that count as he was not directly contracted by the corporation, but employed by independent production company Banijay.
The corporation has yet to decide if the unseen MasterChef series – filmed with both Wallace and Torode last year – will be aired or not.
Image: BBC Broadcasting House in Portland Place, London. Pic: Jordan Pettitt/PA
News of the findings in the Gregg Wallace report came just hours before the BBC was deemed to have breached its editorial guidelines by failing to disclose that the child narrator of a Gaza documentary was the son of a Hamas official.
Media watchdog Ofcom subsequently launched its own investigation into the programme.
While the 2024-25 annual report showed a small rise in trust overall for the corporation, Mr Davie acknowledged it had been a year which saw the reputation of the BBC damaged by “serious failings” in the making of the documentary.
The BBC boss acknowledged: “It was important that the BBC took full responsibility for those failings and apologised for them,” and later in response to a question, called the documentary – Gaza: How To Survive A Warzone – “the most challenging editorial issue I’ve had to deal with”.
He went on: “The importance of fair balance reporting, the need for high-quality homegrown programming in the face of massive pressure, I think has never, ever been greater. And I believe my leadership and the team I’ve assembled can really help the BBC thrive in that environment and very competitive environment.”
Image: BBC Director-General Tim Davie. Pic: PA
BBC boss has chair’s ‘full support’
Despite a series of failings in recent months – including livestreaming the controversial Bob Vylan set at Glastonbury last month – Mr Davie insisted he can “lead” the organisation in the right direction.
When asked if he would resign, he replied: “I simply think I’m in a place where I can work to improve dramatically the BBC and lead it in the right way.
“We will make mistakes, but I think as a leadership and myself, I’ve been very clear, and I think we have been decisive.”
He said the organisation was setting a “global standard” for media.
Mr Shah, reiterated his support for Mr Davie.
“Tim Davie and his team, and Tim in particular, has shown very strong leadership throughout all this period and he has my full support.”
The report also revealed its top earners, which saw former Match Of The Day host Gary Lineker top the chart once again.
Meanwhile, Australian children’s cartoon Bluey proved a boon for the broadcaster, and was the most watched show in the US across all genres – with 55 billion minutes viewed.
The top 10 shows watched over Christmas 2024 were also all from the BBC.
Recent annual reviews have been overshadowed by the Huw Edwards scandal and allegations of a toxic environment around flagship show Strictly Come Dancing.
This breaking news story is being updated and more details will be published shortly.