Business & Economy

HSBC acquires UK subsidiary of collapsed Silicon Valley Bank

London, Mar 13 (EFE).- The British subsidiary of the collapsed Silicon Valley Bank has been sold to HSBC in a private deal facilitated by the United Kingdom’s government and the Bank of England.

Jeremy Hunt, the UK’s chancellor of the exchequer, said no taxpayer money was used in the private rescue package.

“Today the government and the Bank of England have facilitated a private sale of Silicon Valley Bank UK; this ensures customer deposits are protected and can bank as normal, with no taxpayer support,” he added in a statement.

“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.”

The London-headquartered HSBC, Europe’s largest bank, in a statement said it acquired SVB UK for one pound ($1.21).

“As at 10 March 2023, SVB UK had loans of around £5.5bn and deposits of around £6.7bn. For the financial year ending 31 December 2022, SVB UK recorded a profit before tax of £88m. SVB UK’s tangible equity is expected to be around £1.4bn,” it added.

US authorities seized SVB’s assets and closed the bank on Friday although said customer deposits would be protected. The shock closure came after a run on deposits.

The bank, founded 39 years ago, worked closely with the tech and start-up sector.EFE


Related Articles

Back to top button