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- Silicon Valley Bank's UK division was sold to HSBC at 1 British Pound, or $1.21.
- Chancellor Jeremy Hunt stated that the private sale was facilitated by the Bank of England and the UK government.
- Noel Quinn, CEO of HSBC, stated that "this acquisition makes excellent strategic sense to our business in the UK."
According to a Monday statement, HSBC acquired Silicon Valley Bank's UK division for 1 British Pound, or $1.21.
According to Jeremy Hunt, British Chancellor, the private sale was facilitated by the Bank of England and the UK government.
Hunt stated that deposits will be protected without taxpayer support.
–Jeremy Hunt (@Jeremy_Hunt) March 13, 2023
Noel Quinn, CEO of HSBC UK, stated that "this acquisition makes excellent strategic sense to our business in UK." Silicon Valley Bank's UK unit tangible equity will be approximately 1.4 billion pounds.
After the Bank of England announced Friday that it would insolvency the UK subsidiary, the Bank of England acquired the UK unit of Silicon Valley Bank. At the time, the UK central bank said that Silicon Valley Bank's UK subsidiary "has a limited presence and no critical functions supporting financial system."
Silicon Valley Bank's UK branch, according to Erin Platts (the bank's UK CEO, head of Europe, Middle East and Africa), is a separate entity with its own balance sheets and governance structure.
According to HSBC, Silicon Valley Bank UK had 6.7 billion pounds in deposits and loans as of March 10, 2023. It made a profit of 88 million pounds before taxes in 2022.
These developments took place after Friday's closure by regulators of the bank’s California-based parent. The Federal Deposit Insurance Corporation has taken control of it. After a failed capital raise of $2.3 billion, the shares of SVB Financial Group (the bank's holding company) collapsed.
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By: htan@insider.com (Huileng Tan)
Title: Silicon Valley Bank’s UK unit has been sold to HSBC for $1.21
Sourced From: www.businessinsider.com/silicon-valley-bank-uk-unit-sale-hsbc-svb-svb-sivb-2023-3
Published Date: Mon, 13 Mar 2023 08:21:54 +0000
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