- The UK division of Silicon Valley Bank was sold to HSBC for £1, or $1.21.
- Prime Minister Jeremy Hunt said the UK government and the Bank of England had facilitated the sale of private individuals.
- HSBC CEO Noel Quinn said:
HSBC has bought the UK division of Silicon Valley Bank for £1 ($1.21), according to sources. statement from the bank on Monday.
British Prime Minister Jeremy Hunt said the private sale was facilitated by the British government and the Bank of England. twitter.
“Deposits are protected and there is no taxpayer assistance,” Hunt said.
— Jeremy Hunt (@Jeremy_Hunt) March 13, 2023
HSBC CEO Noel Quinn said in a statement from the bank, “This acquisition is highly strategic for our business in the UK. is expected to be around £1.4 billion.
The acquisition of the UK division of Silicon Valley Bank bank of england said on Friday it would take its subsidiary into bankruptcy proceedings. The Bank of England added at the time that Silicon Valley Bank’s U.K. arm “has a limited presence in the U.K. and no significant functions to support the financial system.”
Silicon Valley Bank’s UK branch will be a separate entity with its own balance sheet and governance structure, said Erin Platts, the bank’s UK CEO and head of Europe, Middle East and Africa.
As of 10 March 2023, Silicon Valley Bank UK had £5.5 billion in loans and £6.7 billion in deposits, according to HSBC. Profit before tax of £88m in 2022.
The transatlantic development follows the closure of the bank’s California-based parent company by regulator on friday. It was then taken over by the Federal Deposit Insurance Corporation (FDIC). Shares of his SVB Financial Group, a bank holding company, plummeted after failing to raise $2.3 billion in capital.