Last Updated on March 19, 2023 by Bitfinsider
According to one source, the bonus payments were a sign of HSBC’s trust in the talent pool at its new subsidiary, and the buyer was eager to honor previously agreed payments in order to retain important personnel.
SVB UK, which employs approximately 700 people in the UK, is a profitable business that was brought to the verge of insolvency last weekend by the travails of its American parent company.
According to insiders, the bonuses would not have been paid this week if the company had not been purchased solvently.
One employee pointed out that the near-collapse of SVB UK had made stock held by top executives and other employees worthless.
In the United States, its banking arm has been taken over by the government, and its holding company, SVB Financial Group, has applied for Chapter 11 bankruptcy protection as it seeks buyers for its remaining assets.
According to reports last week, bonuses were also given to its US employees just hours before the Santa Clara-based bank collapsed.
An emergency auction in which Prime Minister Rishi Sunak played a key role attracted interest from challenger banks such as Oaknorth and The Bank of London.
HSBC, Europe’s largest lender, agreed to purchase SVB UK for £1 before markets opened in London on Monday.
It was exempted from bank ring-fencing regulations enacted following the 2008 financial crisis.
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