HSBC has purchased the embattled UK arm of Silicon Valley Bank (SVB UK), securing the deposits of greater than 3,000 prospects price £6.7bn.
Confirming a narrative damaged on Monday by Sky’s City editor Mark Kleinman, the Bank of England, which had been making ready to deliver the financial institution into an insolvency course of, stated all depositors’ cash with SVB UK was protected and safe on account of the acquisition.
All SVB UK providers will proceed to function as regular and prospects shouldn’t discover any adjustments, the assertion stated.
HSBC stated it purchased SVBUK – which has a steadiness sheet of £8.8bn – for £1.
“This acquisition makes excellent strategic sense for our business in the UK,” HSBC stated.
“It 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,” Noel Quinn, HSBC group chief govt stated.
A press release from the Treasury highlighted that no taxpayer cash is concerned within the sale.
Chancellor Jeremy Hunt stated: “Making use of post-crisis banking reforms, which introduced powers to safely manage the failure of banks, this sale has protected both the customers of SVB UK and taxpayers.”
US assures SVB depositors of entry to their cash
“The UK’s tech sector is genuinely world-leading and of huge importance to the British economy, supporting hundreds of thousands of jobs. I said yesterday that we would look after our tech sector, and we have worked urgently to deliver on that promise and find a solution that will provide SVB UK’s customers with confidence,” Mr Hunt added.
“HSBC is Europe’s largest bank, and SVB UK customers should feel reassured by the strength, safety and security that brings them.”