LONDON: HSBC said on Monday it is acquiring the UK subsidiary of Stricken Silicon Valley Bank For £1, save a major lender to technology start-ups in the UK.
“This acquisition makes excellent strategic sense for our business in the UK,” said the HSBC CEO. noel quinn said in a statement.
The move comes after US authorities froze deposits and prevented any wider fallout from the sudden collapse of its parent, tech start-up lender Silicon Valley Bank.
Following the announcement, the Bank of England said that the UK banking system was fine.
“No other UK banks are directly, materially affected by these actions, or by the resolution of SVBUK’s US parent bank. The wider UK banking system remains safe, sound and well capitalised.”
SVB UK is ringfenced from the US group, and HSBC said the parent company’s assets and liabilities were excluded from the transaction.
The deal ended a weekend of frantic negotiations between the government, regulators and potential buyers for the UK business.
By March 10, Silicon Valley Bank UK Limited HSBC said it had loans of about 5.5 billion pounds and deposits of about 6.7 billion pounds.
HSBC said the tangible equity of SVB UK is expected to be approximately £1.4 billion.
The transaction is completed instantly, the bank said.
Unlike the United States, Britain has not announced sweeping liquidity measures for the banking system.
“This acquisition makes excellent strategic sense for our business in the UK,” said the HSBC CEO. noel quinn said in a statement.
The move comes after US authorities froze deposits and prevented any wider fallout from the sudden collapse of its parent, tech start-up lender Silicon Valley Bank.
Following the announcement, the Bank of England said that the UK banking system was fine.
“No other UK banks are directly, materially affected by these actions, or by the resolution of SVBUK’s US parent bank. The wider UK banking system remains safe, sound and well capitalised.”
SVB UK is ringfenced from the US group, and HSBC said the parent company’s assets and liabilities were excluded from the transaction.
The deal ended a weekend of frantic negotiations between the government, regulators and potential buyers for the UK business.
By March 10, Silicon Valley Bank UK Limited HSBC said it had loans of about 5.5 billion pounds and deposits of about 6.7 billion pounds.
HSBC said the tangible equity of SVB UK is expected to be approximately £1.4 billion.
The transaction is completed instantly, the bank said.
Unlike the United States, Britain has not announced sweeping liquidity measures for the banking system.
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