HSBC snaps up beleaguered Silicon Valley Bank UK for £1
HSBC UK has stepped in to acquire beleaguered Silicon Valley Bank UK for the nominal sum of £1, with all customer deposits protected.
HSBC steps in to buy Silicon Valley Bank UK for £1
The parent company of the tech firm lender, Silicon Valley Bank, was shuttered by US regulators on Friday, marking the largest failure of a US bank since 2008.
The US Federal Reserve said it would step in on Sunday to ensure all insured and uninsured deposits would be protected.
Fears of contagion across the UK tech sector led the Bank of England to facilitate the HSBC deal over the weekend, in consultation with the Treasury, using powers granted by the Banking Act 2009.
The UK technology sector, TechCrunch says, would be highly exposed in the event of a collapse of both SVB and its UK arm.
Speaking on the HSBC deal, UK chancellor Jeremy Hunt says: “Today the government and the Bank of England have facilitated a private sale of Silicon Valley Bank UK; this ensures customer deposits are protected and can bank as normal, with no taxpayer support.”
HSBC group CEO Noel Quinn says the acquisition “strengthens our commercial banking franchise and enhances our ability to serve innovative and fast-growing firms, including in the technology and life-science sectors, in the UK and internationally”.
HSBC says the “transaction completes immediately” and all assets and liabilities of the parent companies of SVB UK are excluded from the transaction.
