HSBC Subsidiary to Acquire Silicon Valley Bank's UK Unit for 1 British Pound
Depositors will be protected, the U.K. government said, as it seeks to limit wider economic fallout from the bank's collapse.
HSBC Holdings Plc (HSBA) said its U.K ring-fenced subsidiary, HSBC U.K. Bank, is acquiring Silicon Valley Bank U.K. (SVB U.K.) for 1 British pound (US$1.21), as per a filing.
As of March 10, SVB U.K. had loans of around $6.6 billion and deposits of around $8.1 billion, the filing read.
Noel Quinn, HSBC Group CEO, said, "This acquisition makes excellent strategic sense for our business in the U.K. 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 U.K. and internationally."
The sale, announced Monday, was facilitated by the U.K. government under “resolution” powers designed to wind up failing lenders without destabilizing the financial system.
“Deposits will be protected, with no taxpayer support,” Finance Minister Jeremy Hunt tweeted Monday, adding that he had worked urgently to look after the country's tech sector.
Late Friday night, the Bank of England tweeted that SVB U.K. would be put into insolvency, but that the lender had a limited presence in the country.
U.S. regulators on Sunday said that SVB depositors would be made whole and be able to access funds as of Monday, as they seek to stop the biggest bank failure since 2008 from undermining confidence in the financial system.
Read more: Who Failed Silicon Valley Bank Depositors?
UPDATE (March 13, 2023 07:45 UTC): Adds last four paragraphs.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.