HSBC Acquires Silicon Valley Bank UK — Sale Facilitated by Government, Bank of England

HSBC Acquires Silicon Valley Bank UK — Sale Facilitated by Government, Bank of England

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, with no taxpayer support.” British Government Announces Acquisition of Silicon Valley Bank UK by HSBC

HSBC has acquired Silicon Valley Bank UK (SVB UK), the British subsidiary of Silicon Valley Bank (SVB) that was shut down by U.S. regulators on Friday. British Chancellor of the Exchequer Jeremy Hunt tweeted 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 taxpayer support.

In a filing with the London Stock Exchange Monday, HSBC stated that its U.K. subsidiary, HSBC UK Bank plc, is acquiring Silicon Valley Bank UK Ltd. for £1 ($1.22). The filing details that as of March 10, “SVB UK had loans of around £5.5bn and deposits of around £6.7bn.” Moreover, for the financial year ending Dec. 22, 2022, the filing states that “SVB UK recorded a profit before tax of £88m,” adding that the British 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 completes immediately. The acquisition will be funded from existing resources.”

Noel Quinn, HSBC Group’s CEO, commented: This acquisition makes excellent strategic sense for our business in the U.K. 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 U.K. and internationally.

“SVB UK customers can continue to bank as usual,” the executive clarified, adding: “We warmly welcome SVB UK colleagues to HSBC, we are excited to start working with them.”

In the U.S., the Department of the Treasury, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation (FDIC) have taken measures to protect SVB depositors. They announced Sunday: “Depositors will have access to all of their money starting Monday, March 13. No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer.” Tags in this story HSBC, HSBC acquires Silicon Valley Bank, HSBC acquires SVB UK, HSBC Silicon Valley Bank, HSBC SVB, HSBC SVB UK, Noel Quinn, Noel Quinn Silicon Valley Bank, Noel Quinn SVB

What do you think about HSBC acquiring Silicon Valley Bank UK for £1? Let us know in the comments section below. 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 between economics and cryptography. Bank of Russia Registers Another Digital Asset Issuer FINANCE | 1 day ago Iran’s Crypto Rial Project Enters Trial Phase FINANCE | 4 days ago

Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleSD Governor Urges 20 States to Block Legislation That Bans Crypto’s Use as Money — Says ‘Its a Threat to Our Freedom’ Next articleStudy Shows QR and Digital Payments Continue Gaining Ground in Argentina Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItFollowing a Brief Fee Spike, Gas Prices to Move Ethereum Drop 76% in 12 Days

Transaction fees on the Ethereum network are dropping again after average fees saw a brief spike on April 5 jumping to $43 per transfer. 12 days later, average ether fees are close to dropping below $10 per transaction and median-sized ... read more.Bitcoin ATM Operator Indicted in New York Allegedly Running Illegal Business Attracting Criminals Fed"s Bullard Wants to Raise Bank Rate to 3.5% by Year"s End, Hints at 75 Basis Point Rate Hike Interest in Real Estate Investments in Spain Grew 400%, With Some Using Crypto and Stocks as Payment Method Digital Ruble ‘Much Needed,’ Russia’s Central Bank Says, Won’t Delay Testing