HSBC said it purchased Silicon Valley Bank’s U.K. subsidiary for just $1.21.
Topline
HSBC on Monday announced it was acquiring the U.K. arm of failed Silicon Valley Bank (SVB), throwing a much needed lifeline to the country’s tech and life sciences sectors and ending a frenzied weekend of negotiations, as officials and industry leaders rush to contain fallout from the largest U.S. banking failure since the 2008 financial crisis.Key Facts
HSBC purchased Silicon Valley Bank UK (SVB UK) for $1.21 (£1), the company said in a statement.
The deal, facilitated by the Bank of England and the U.K. government, completes immediately and will be funded from the bank’s existing resources.
HSBC, Europe’s largest bank and one of the biggest financial institutions in the world, said it will take on loans of around $6.7 billion (£5.5 billion) and deposits of $8.1 billion (£6.7 billion) from SVB UK, adding that assets and liabilities of its parent company are excluded from the deal.
HSBC Group chief executive Noel Quinn said the acquisition “makes excellent strategic sense” for the bank’s U.
