HSBC acquires Silicon Valley Bank in UK for 1 pound
HSBC has acquired Silicon Valley Bank UK Ltd for one pound after the collapse of the parent company. The acquisition was made to protect depositors and contain any further repercussions of the failure.
“This acquisition makes excellent strategic sense for our business in the UK,” HSBC CEO Noel Quinn said in a statement.
HSBC CEO Noel Quinn stated that the acquisition makes excellent strategic sense for the business in the UK.Silicon Valley Bank’s crisis has affected startups and businesses globally. HSBC reports that Silicon Valley Bank UK Ltd had loans totaling about 5.5 billion pounds and deposits totaling about 6.7 billion pounds as of March 10.
According to the tweet, The bank also reports that the tangible equity of SVB UK is expected to be close to 1.4 billion pounds.The transaction was immediate and funded using already available funds. Britain has not revealed more extensive liquidity measures for the banking sector, in contrast to the US.