The British authorities and the central financial institution, the Bank of England, have facilitated a personal sale of Silicon Valley Bank UK to HSBC, based on Chancellor of the Exchequer Jeremy Hunt. He pressured that “Deposits will be protected, with no taxpayer 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 on Friday. British Chancellor of the Exchequer Jeremy Hunt tweeted Monday:
This morning, the federal government and the Bank of England facilitated a personal sale of Silicon Valley Bank UK to HSBC. Deposits can be protected, with no taxpayer assist.
In a submitting with the London Stock Exchange Monday, HSBC acknowledged that its U.K. subsidiary, HSBC UK Bank plc, is buying Silicon Valley Bank UK Ltd. for £1 ($1.22). The submitting particulars that as of March 10, “SVB UK had loans of around £5.5bn and deposits of around £6.7bn.” Moreover, for the monetary yr ending Dec. 22, 2022, the submitting states that “SVB UK recorded a profit before tax of £88m,” including that the British subsidiary’s “tangible equity is expected to be around £1.4bn.”
HSBC famous: “The assets and liabilities of the parent companies of SVB UK are excluded from the transaction. The transaction completes immediately. The acquisition will be funded from existing resources.”
Noel Quinn, HSBC Group’s CEO, commented:
This acquisition makes wonderful strategic sense for our enterprise within the U.K. It strengthens our business banking franchise and enhances our means to serve modern and fast-growing companies, together with within the expertise and life-science sectors, within the U.K. and internationally.
“SVB UK customers can continue to bank as usual,” the chief clarified, including: “We warmly welcome SVB UK colleagues to HSBC, we are excited to start working 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) have taken measures to guard SVB depositors. They introduced Sunday: “Depositors will have access to all of their money starting Monday, March 13. No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer.”
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