- Purchasing SVB UK is a smart strategic move for the company in the UK as per Quinn.
- SVB was privately sold to HSBC with the help of the government and the BoE.
Most recently, it was declared by the government of the United Kingdom (UK) that HSBC holdings had acquired the British affiliate of the Silicon Valley Bank. This comes after a U.S. government body took action to protect depositors at the failing bank.
The CEO of HSBC, Noel Quinn, was quoted as saying that purchasing SVB UK is a smart strategic move for the company in the UK. HSBC Holdings, however, claimed that it paid just £1 for the acquisition.
Deposits of Over £6.7 Billion
The UK branch of the defunct Silicon Valley Bank was privately sold to HSBC. This was with the help of the government and the Bank of England, as British Finance Minister Jeremy Hunt revealed in a tweet. It was also stated that there would be no government backing to risk the deposits. Yet unlike the United States, Britain hasn’t proposed any sweeping plans to increase bank liquidity.
He promised that the agency would protect the UK’s IT industry. And its members are hard at work making good on that promise. The British government and the Bank of England are working hard to mitigate and prevent as much harm as possible in the event of SVB’s collapse, as the British Finance Minister said earlier.
According to the data presented, SVB UK has deposits of over £6.7 billion and loans of over £5.5 billion. HSBC stated, however, that Silicon Valley Bank UK had tangible equity of roughly 1.4 billion pounds. The crypto market took a significant hit with the failure of a cryptocurrency-friendly Silicon Valley bank.