HSBC acquires the UK unit of Silicon Valley Bank

HSBC Bank announced on Monday that it has acquired the UK unit of Silicon Valley Bank (SVB) for one British pound.

In a statement, Noel Quinn, the CEO of HSBC, said that this acquisition has a great strategic value for our operations in the United Kingdom.

The British Chancellor, Jeremy Hunt, stated that the government and the Bank of England approved the sale of Silicon Valley Bank in Britain to HSBC, which would protect deposits without the support of taxpayers.

Hunt explained: this guarantees the protection of client deposits and the continuation of banking operations as usual, without support from taxpayers. I am pleased that we have come to a solution in such a short time.

The statement continued: HSBC is the largest bank in Europe and it is expected that Silicon Valley Bank UK customers should feel reassured about the strength and security of this takeover.

This comes after US authorities moved to support deposits and prevent any wider ramifications of the sudden collapse of Silicon Valley Bank, which was followed by its British unit.

A potential buyer for the British arm of the bankrupt American bank Silicon Valley emerged yesterday on Sunday, while Prime Minister Rishi Sunak stated that his government is working to minimize any impact on companies resulting from the bank’s collapse.

London Bank has officially submitted a proposal to the British arm of Silicon Valley Bank and sent it to authorities including the Treasury and the Bank of England.

The devastating bankruptcy of Silicon Valley Financial Group, a group focused on start-up technology companies, is considered the largest bank collapse in the United States since the financial crisis of 2008.

Jeremy Hunt, the British Finance Minister, stated on Sunday that bankruptcy may have a significant impact on British technology companies due to the importance of Silicon Valley Bank to some clients.