HSBC buys failed US bank SVB's UK arm for £1

Agence France-Presse

<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img alt="Police officers leave Silicon Valley Bank’s headquarters in Santa Clara, California on March 10, 2023. US authorities swooped in and seized the assets of SVB, a key lender to US startups since the 1980s, after a run on deposits made it no longer tenable for the medium-sized bank to stay afloat on its own. NOAH BERGER / AFP" src="https://sa.kapamilya.com/absnews/abscbnnews/media/2023/overseas/03/13/svb.jpg"/><figcaption>Police officers leave Silicon Valley Bank’s headquarters in Santa Clara, California on March 10, 2023. US authorities swooped in and seized the assets of SVB, a key lender to US startups since the 1980s, after a run on deposits made it no longer tenable for the medium-sized bank to stay afloat on its own. <em>NOAH BERGER / AFP</em></figcaption></figure></div><p>LONDON - The UK arm of failed US lender Silicon Valley Bank has been sold to HSBC for a nominal £1 ($1.2) in a rescue deal, the government and HSBC announced Monday.</p><p>The deal, overseen by the Bank of England and the Treasury, comes after SVB collapsed Friday sparking panic in Britain over its customers in the technology and life science sectors. </p><p>&quot;Silicon Valley Bank (UK) Ltd has today been sold to HSBC,&quot; said a Treasury statement after urgent talks over the weekend.</p><p>&quot;This transaction has been facilitated by the Bank of England, in consultation with the Treasury, using powers granted by the Banking Act 2009.&quot;</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/03/12/23/worry-for-tech-startups-after-silicon-valley-bank-failure">Worry for tech startups after Silicon Valley Bank failure</a></li>	<li><a href="https://news.abs-cbn.com/business/03/13/23/us-govt-rules-out-silicon-valley-bank-bailout">US gov&#x27;t rules out Silicon Valley Bank bailout, wants to avoid &#x27;contagion&#x27;: Yellen</a></li></ul><p>Finance minister Jeremy Hunt added that no government cash was involved, while all customer deposits have been safeguarded.</p><p>&quot;This (deal) ensures customer deposits are protected and can bank as normal, with no taxpayer support.</p><p>&quot;I am pleased we have reached a resolution in such short order,&quot; added Hunt.</p><p>HSBC has agreed to pay just £1 for the business, the bank giant added in a separate statement.</p><p>The Asia-focused lender added that SVB UK had loans of about £5.5 billion and deposits of around £6.7 billion.</p><p>&quot;This acquisition makes excellent strategic sense for our business in the UK,&quot; said HSBC chief executive Noel Quinn.</p><p>&quot;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.&quot;</p><p>He added that SVB UK&#x27;s customers &quot;can continue to bank as usual&quot; and will be &quot;safe in the knowledge that their deposits are backed by the strength, safety and security of HSBC&quot;.</p><p>California-based SVB failed after its customers, mainly from the tech sector, made massive withdrawals, and after its latest attempt to raise new money proved unsuccessful.</p><p>Its demise is not only the largest bank failure since Washington Mutual in 2008, but also the second-largest retail bank failure in the US. </p><div><strong>RELATED VIDEO</strong></div><figure class="op-interactive"><iframe allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=1831376" width="100%"></iframe></figure><div class="iwantbar">Watch more News on <a href="https://www.iwanttfc.com/#!/browse/Genres/News/tag_id_genres/id_news" target="_blank">iWantTFC</a></div>

The UK arm of failed US lender Silicon Valley Bank has been sold to HSBC for a nominal £1 ($1.2) in a rescue deal, the government and HSBC announced Monday.

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HSBC buys failed US bank SVB's UK arm for £1

HSBC buys failed US bank SVB's UK arm for £1

Agence France-Presse

Published Mar 13, 2023 05:12 PM PHT

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