Kevin Helms
A student of Austrian economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection of finance and cryptography.
HSBC buys Silicon Valley Bank UK – Sale facilitated by government, Bank of England – Finance Bitcoin News
The British government and the central bank, the Bank of England, have facilitated a private sale of Silicon Valley Bank UK to HSBC, according to Chancellor of the Exchequer Jeremy Hunt. He stressed that “deposits will be protected, without support from taxpayers.”
British authorities announce acquisition of Silicon Valley Bank UK by HSBC
HSBC has acquired Silicon Valley Bank UK (SVB UK), the UK subsidiary of Silicon Valley Bank (SVB) which was shut down by US regulators on Friday. British Chancellor of the Exchequer Jeremy Hunt tweeted on Monday:
This morning the Government and the Bank of England facilitated a private sale of Silicon Valley Bank UK to HSBC. Deposits will be protected, with no support from taxpayers.
In a filing with the London Stock Exchange on Monday, HSBC said its UK subsidiary, HSBC UK Bank plc, is buying Silicon Valley Bank UK Ltd. for £1 ($1.22). The filing shows that as of March 10, “SVB UK had loans of around £5.5 billion and deposits of around £6.7 billion.” Also, for the financial year ending December 22, 2022, the filing states that “SVB UK recorded a pre-tax profit of £88m,” adding that the UK subsidiary’s “tangible equity is expected to be around £1.4bn. “
HSBC noted: “The assets and liabilities of the parent companies of SVB UK are excluded from the transaction. The transaction is completed immediately. The acquisition will be financed from existing resources.”
Noel Quinn, HSBC Group Chief Executive, commented:
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 sciences sectors, in the UK and internationally.
“SVB UK customers can continue to bank as usual,” the manager explained, adding: “We warmly welcome SVB UK colleagues to HSBC, we are excited to start working with them.”
In the United States, the Treasury Department, the Board of the Federal Reserve System, and the Federal Deposit Insurance Corporation (FDIC) have taken measures to protect SVB depositors. They announced on Sunday: “Depositors will have access to all their money from Monday 13 March. No losses related to the dissolution of Silicon Valley Bank will be borne by the taxpayer.”
What do you think of HSBC buying Silicon Valley Bank UK for £1? Let us know in the comments section below.
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