Silicon Valley Bank (Reuters)
Britain’s economy
British Chancellor of the Exchequer: We pledge to protect deposits in the British SVB unit
HSBC announced today, Monday, that it has acquired the unit of Silicon Valley Bank – SVB in Britain for one pound sterling.
“This acquisition has an excellent strategic impact on our business in the UK,” HSBC Chief Executive Noel Cowen said in a statement.
British Chancellor of the Exchequer Jeremy Hunt said the government and the Bank of England had facilitated the sale of the Silicon Valley unit in Britain to HSBC, in a move that would protect deposits without support from taxpayers.
“This ensures that customer deposits are protected and banking can continue as normal, without the backing of taxpayers… I am delighted that we have found a solution in such a short time,” Hunt said.
He continued by saying: “HSBC is the largest bank in Europe, and customers of Silicon Valley Bank in the United Kingdom should feel reassured about the strength and security” that this acquisition means.
It comes after US authorities moved to shore up deposits and stem any wider fallout from the sudden collapse of Silicon Valley Bank, which the British unit is tracking.
Yesterday, Sunday, a potential buyer for the British arm of the bankrupt US Silicon Valley bank appeared, while Prime Minister Rishi Sunak said his government was working to limit any repercussions on companies due to the collapse of the bank.
The Bank of London said it had submitted a formal proposal to the British arm of Silicon Valley Bank and had sent it to authorities including the Treasury and the Bank of England.
The catastrophic bankruptcy of Silicon Valley Financial Group, a group focused on tech startups, on Friday marks the biggest bank collapse in the US since the 2008 financial crisis.
British Finance Minister Jeremy Hunt said on Sunday that bankruptcy could have a huge impact on British technology companies, given the importance of Silicon Valley to some clients.
