HSBC Buys UK Arm of Silicon Valley Bank
March 13 2023 - 03:48AM
Dow Jones News
By Joe Hoppe
HSBC Holdings PLC said Monday that it has purchased Silicon
Valley Bank UK Ltd., the U.K. arm of the collapsed Silicon Valley
Bank, for 1 pound ($1.20).
The banking giant and the U.K. Treasury said all depositors'
money with SVBUK is safe and secure and that all operations will
continue as normal.
HSBC said the acquisition will help strengthen its franchise in
the U.K.
As of March 10, SVBUK had loans of around GBP5.5 billion and
deposits of around GBP6.7 billion, while tangible equity is
expected to be around GBP1.4 billion.
The acquisition was completed immediately.
The Bank of England said it took the decision to sell SVBUK to
stabilize the business, ensure continuity of banking services,
minimize disruption to the country's technology sector and support
confidence in the financial system.
On Friday, SVBUK parent Silicon Valley Bank was shut down after
being hit by a run on its deposits, becoming the second-largest
bank failure in U.S. history. Later that day, the BoE had said it
plans to put SVBUK into insolvency procedure on Sunday, barring any
developments.
Write to Joe Hoppe at joseph.hoppe@wsj.com
(END) Dow Jones Newswires
March 13, 2023 03:33 ET (07:33 GMT)
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