The week started with moans that London is losing out on the latest tech boom. That its financial markets are dowdy and unappealing.
By today, investors were calling for a government bailout of at least one US tech giant — the Silicon Valley Bank— in order to prevent another banking crisis.
Inbetween, supposed tech darling WANdisco went from hero to zero in about 24 hours.
When it said it would seek a US stock market listing this was seen as yet another sign of London losing to New York. Then it revealed it had uncovered “significant, sophisticated and potentially fraudulent irregularities” that puts its entire future in doubt.
New York is welcome to it.
Over in Silicon Valley, a place we’re supposed to be jealously in awe of, Silicon Valley Bank shares plunged 60% as investors suddenly decided to withdraw money.
In fear and panic, America’s top banks including JP Morgan, the world’s biggest lender, lost $50 billion in market value.
That’s what we’re supposed to be copying by loosening our regulations?
Every time the City chases the latest fad two things happen. First, it doesn’t work. Second, that it didn’t work turns out to be a great relief.
London’s stricter rules for firms listing on the stock market are a good thing, a strength. We have them for a reason and they mostly serve us well. It would be better if London saw itself as a club with strong entry requirements rather than a cold caller trying to sell timeshares to reluctant investors.
The City has been the leading centre of finance for centuries. Others will come and go.
