HSBC to buy UK arm of Silicon Valley Bank
HSBC Holdings said it paid a purchase price of £1 as part of the transaction
The UK government today said that HSBC Holdings has acquired the British arm of troubled US tech startup-focused Silicon Valley Bank, which failed on Friday (9 March), reports CNBC.
"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 I said yesterday that we would look after our tech sector, and we have worked urgently to deliver that promise," UK Finance Minister Jeremy Hunt tweeted on Monday (13 March).
HSBC Holdings said it paid a purchase price of £1 as part of the transaction.
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Customers and businesses who have money deposited in SVB UK will be able to access it as well as other banking services as normal.
The UK government said the deal with HSBC involved no taxpayer money.
The deal comes after SVB - which specialised in lending to technology companies - went bust in the US on Friday in the largest failure of a US bank since the financial crisis in 2008.
Its collapse sent shockwaves across the tech industry over the possible impact it could have on businesses, with some firms telling the BBC they could go bust if deposits were not secured.
