HSBC Subsidiary to Acquire Silicon Valley Bank’s U.K. Unit for 1 Pound

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Last Updated on March 13, 2023 by Bitfinsider

According to a statement, HSBC Holdings Plc (HSBA) announced that its ring-fenced subsidiary in the United Kingdom, HSBC U.K. Bank, is purchasing Silicon Valley Bank U.K. (SVB U.K.) for £1 ($1.21).

According to the report, as of March 10, SVB U.K. had approximately $6.6 billion in loans and approximately $8.1 billion in assets.

HSBC Group CEO Noel Quinn stated, “This purchase makes great strategic sense for our UK operations. It strengthens our commercial banking brand and expands our capacity to service innovative and fast-growing businesses, including those in technology and life sciences, in the United Kingdom and abroad.”

The sale, which was revealed on Monday, was enabled by the United Kingdom government using “resolution” powers intended to wind up insolvent lenders without disrupting the financial system.

“Deposits will be protected, with no taxpayer support,” finance minister Jeremy Hunt wrote Monday, adding that he had moved quickly to secure the country’s technology industry.

The Bank of England announced late Friday night that SVB U.K. would be placed in insolvency, but that the lender had a restricted footprint in the nation.

US authorities said on Sunday that SVB depositors would be made whole and able to access money as of Monday, in an effort to prevent the largest bank collapse since 2008 from undermining trust in the financial system.

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