HSBC has bought the UK arm of stricken Silicon Valley Bank for a nominal £1, the Asia-focused bank said on Monday after a night of frantic negotiations involving government ministers and Bank of England officials.
Talks took place over the weekend on a private sale of SVB UK and a plan to help depositors in the lender in an effort to avoid a state bailout. US regulators on Sunday evening said that SVB’s American depositors would have access to all of their money on Monday.
“This acquisition makes excellent strategic sense for our business in the UK. 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 UK and internationally,” said HSBC chief executive Noel Quinn.
The collapse of SVB’s US-listed parent company, now under government control, is one of the biggest since the global banks caused the financial crisis of 2008, leading to bailouts of the sector around the world, much to the anger of taxpayers.
Reporting by Frank Prenesti for Sharecast.com
