HSBC

HSBC has scooped up the UK arm of Silicon Valley Bank for £1 ($1.2), just days after its business in the United States collapsed in stunning fashion.

It also logged a pretax profit of £88 million ($106.5 million) in its last fiscal year ended December. That ultimately led to its collapse, the “This acquisition makes excellent strategic sense for our business in the UK,” he said. [concerns of contagion](https://edition.cnn.com/2023/03/12/investing/silicon-valley-bank-bailout/index.html) over the weekend, [announcing](https://edition.cnn.com/2023/03/12/investing/svb-customer-bailout/index.html) that customers of the failed bank would get access to all their money starting Monday. “I think we can all relax a bit today,” he told CNN. Uncapped is also offering longer-term bridge loans to help with working capital.

Global banking giant HSBC Holdings is coming to rescue the United Kingdom-based branch of the collapsed Silicon Valley Bank with a new acquisition.

That would be a massive relief for tech companies, who feared an ‘existential threat‘ to their businesses if they had lost their funds at SVB UK, the Guardian reported. Global banking giant HSBC Holdings is coming to rescue the United Kingdom-based branch of the collapsed Silicon Valley Bank with a new acquisition. “As of 10 March 2023, SVB UK had loans of around 5.5 billion pounds and deposits of around 6.7 billion pounds. In a statement, HSBC says the transaction “completes immediately”. SVB UK’s tangible equity is expected to be around 1.4 billion pounds. The sale to HSBC has been taken to “stabilize SVBUK“, says the Bank of England.

HSBC UK is acquiring Silicon Valley Bank UK for a symbolic £1 after a tense weekend of negotiations in the wake of the collapse of SVB.

The Bank of England and government worked all night to secure a deal involving no taxpayer money.

It seems the only thing wrong with SVB UK was its name. While the deal with HSBC was broadly welcomed, the Bank of London - a UK clearing bank - said it was a "missed opportunity". It had adequate capital and was making reasonable profits. Former investment banker Sir Philip Augar said the UK government and regulators had a "good weekend in actually avoiding a crisis", but warned there was an irony in the collapse of SVB just as the government was considering "slackening" regulations in the financial services industry. The rescue deal for the UK arm comes after the US agreed a rescue deal for customers in the US bank, Silicon Valley Bank - which specialised in lending to technology companies - was shut down by US regulators on Friday in what was the largest failure of a US bank since 2008.

Despite its name, the bank best known for serving startups as its customers is a global business, with outposts outside of the U.S..

business, [no buyer had been announced](https://www.axios.com/2023/03/12/no-buyer-for-silicon-valley-bank) as of early Monday. [Silicon Valley Bank's](https://www.axios.com/2023/03/11/silicon-valley-bank-rip) U.K. Oaknorth Bank [and ADQ](https://news.sky.com/story/ex-tory-donors-bank-oaknorth-in-talks-to-buy-stricken-silicon-valley-bank-uk-12832334), an Abu Dhabi state-backed investment vehicle, were reportedly also interested. [announced it would backstop depositors](https://www.axios.com/2023/03/12/silicon-valley-bank-regulators-backstop) in the U.S. in Europe, Canada, Israel and a Chinese joint venture. [Economy & Business](https://www.axios.com/economy-business)