HSBC Acquires Silicon Valley Bank UK — Sale Facilitated by Government, Bank of England

The British authorities and the cardinal bank, the Bank of England, person facilitated a backstage merchantability of Silicon Valley Bank UK to HSBC, according to Chancellor of the Exchequer Jeremy Hunt. He stressed that “Deposits volition beryllium protected, with nary payer support.”

British Government Announces Acquisition of Silicon Valley Bank UK by HSBC

HSBC has acquired Silicon Valley Bank UK (SVB UK), the British subsidiary of Silicon Valley Bank (SVB) that was shut down by U.S. regulators connected Friday. British Chancellor of the Exchequer Jeremy Hunt tweeted Monday:

This morning, the authorities and the Bank of England facilitated a backstage merchantability of Silicon Valley Bank UK to HSBC. Deposits volition beryllium protected, with nary payer support.

In a filing with the London Stock Exchange Monday, HSBC stated that its U.K. subsidiary, HSBC UK Bank plc, is acquiring Silicon Valley Bank UK Ltd. for £1 ($1.22). The filing details that arsenic of March 10, “SVB UK had loans of astir £5.5bn and deposits of astir £6.7bn.” Moreover, for the fiscal twelvemonth ending Dec. 22, 2022, the filing states that “SVB UK recorded a nett earlier taxation of £88m,” adding that the British subsidiary’s “tangible equity is expected to beryllium astir £1.4bn.”

HSBC noted: “The assets and liabilities of the genitor companies of SVB UK are excluded from the transaction. The transaction completes immediately. The acquisition volition beryllium funded from existing resources.”

Noel Quinn, HSBC Group’s CEO, commented:

This acquisition makes fantabulous strategical consciousness for our concern successful the U.K. It strengthens our commercialized banking franchise and enhances our quality to service innovative and fast-growing firms, including successful the exertion and life-science sectors, successful the U.K. and internationally.

“SVB UK customers tin proceed to slope arsenic usual,” the enforcement clarified, adding: “We warmly invited SVB UK colleagues to HSBC, we are excited to commencement moving with them.”

In the U.S., the Department of the Treasury, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation (FDIC) person taken measures to support SVB depositors. They announced Sunday: “Depositors volition person entree to each of their wealth starting Monday, March 13. No losses associated with the resolution of Silicon Valley Bank volition beryllium borne by the taxpayer.”

What bash you deliberation astir HSBC acquiring Silicon Valley Bank UK for £1? Let america cognize successful the comments conception below.

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