HSBC buys UK subsidiary of bankrupt SVB

HSBC bought the UK subsidiary of Silicon Valley Bank (SVB), which was seized by the US.

With HSBC’s acquisition of SVB’s UK subsidiary, deposits at the bank will be protected without creating a financial burden on the country’s treasury and taxpayers.

British Finance Minister Jeremy Hunt said the government and the Bank of England (BOE) have approved the purchase: “This (step) ensures that customer deposits are protected and can be used normally without overburdening taxpayers. I am pleased to be able to reach a solution in such a short time.”

THE LARGEST FAILURE OF A BANK SINCE 2008

The bankruptcy of the US SVB, whose clients are mostly tech start-ups, announced on Friday is described as the biggest bank failure since the 2008 US economic crisis.

The US government and the US Federal Reserve (Fed) also took a series of emergency measures yesterday to calm concerns about a massive crisis in the banking system and restore confidence in the banking system. (Reuters)