HSBC to buy Silicon Valley Bank UK for £1


LONDON – HSBC has agreed to buy the UK subsidiary of Silicon Valley Bank for 1 pound – just over $1 – in a deal brokered by the British government and the Bank of England following the collapse of the US lender.

“This acquisition makes excellent strategic sense for our UK business,” HSBC chief executive Noel Quinn said in a statement on Monday.

The British government said customer deposits would be protected “without taxpayer support”.

“SVB UK customers can access their deposits and banking services as usual from today,” it said.

Under the terms of the agreement, Silicon Valley Bank UK Limited, HSBC’s UK subsidiary, will finance the acquisition, which is expected to close immediately. The transaction excludes all assets and liabilities of SVB’s parent company.

Silicon Valley Bank Collapsed. Here’s what we know.

The UK deal approved an emergency intervention aimed at averting a crisis in the financial system, announcing on Sunday night that depositors would have access to all their money on Monday morning, after the Biden administration moved to protect SVB clients from losses.

Authorities said they are expanding protections for depositors at New York’s Signature Bank, which was shut down by state regulators on Sunday amid widespread financial sector concerns.

The US says all deposits at the failed bank will be available on Monday

The British government, the Bank of England and British financial regulators have spent days looking for a buyer for SVB’s UK subsidiary to protect the country’s technology sector. UK start-ups are particularly dependent on the bank for funding, but face uncharted waters after US regulators closed SVB on Friday, the second biggest bank failure in US history.

Jeremy Hunt, UK Chancellor of the Exchequer said The government promised to “take care” of the sector and bank customers and “worked urgently” to deliver.

The Bank of England said it approved the sale to “stabilise SVBUK”, ensure “continuity of banking services”, reduce “disruption to the UK technology sector” and “strengthen confidence in the financial system”.

Jeff Stein, David J. Lynch, Tony Romm, Tyler Pager and Julian Mark contributed to this report.

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