HSBC buys Silicon Valley Bank UK, protecting deposits

LONDON — HSBC connected Monday announced a woody to bargain the U.K. subsidiary of the U.S. tech startup lender Silicon Valley Bank, which collapsed connected Friday.

HSBC confirmed that its U.K. ring-fenced subsidiary, HSBC UK Bank, had agreed to get SVB U.K. for £1 ($1.21). The assets and liabilities of SVB U.K.'s genitor institution are excluded from the transaction.

The acquisition "strengthens our commercialized banking franchise and enhances our quality to service innovative and fast-growing firms, including successful the exertion and life-science sectors, successful the U.K. and internationally," said HSBC Group CEO Noel Quinn.

The sale, facilitated by the Bank of England successful consultation with the U.K. Treasury, volition support the deposits of SVB U.K. clients, the Treasury said successful a statement.

British Finance Minister Jeremy Hunt stressed that the woody "ensures lawsuit deposits are protected and tin slope arsenic normal, with nary payer support."

"The U.K.'s tech assemblage is genuinely world-leading and of immense value to the British economy, supporting hundreds of thousands of jobs," helium added.

Hunt had connected Sunday said that the U.K. medication and the Bank of England were moving to "avoid oregon minimize" imaginable harm resulting from the U.K. subdivision of SVB.

In parallel, U.S. regulators connected Sunday approved plans to backstop depositors and fiscal institutions linked with U.S. genitor institution SVB.

A big of imaginable buyers had submitted proposals to acquisition SVB U.K. since the Friday nonaccomplishment of its U.S. genitor company, amid wide interest implicit the contiguous futures of galore British tech and beingness sciences startups.

The Bank of London said that a consortium of backstage equity firms that it led had besides submitted a ceremonial connection to the U.K. Treasury and the Prudential Regulation Authority astatine the Bank of England.

Bank of London CEO Anthony Watson said SVB "cannot beryllium allowed to neglect fixed the captious assemblage it serves."

"This is simply a unsocial accidental to guarantee the U.K. has a much diversified banking sector, whilst allowing continuity of work to SVB's UK lawsuit base. It would beryllium profoundly disappointing for this infinitesimal to pb to further consolidation of powerfulness among large banks."

The Bank of England confirmed that nary different U.K. banks are "directly materially affected by these actions, oregon by the solution of SVBUK's U.S. genitor bank," adding that the wider British banking strategy remains "safe, dependable and good capitalised."