HSBC’s UK subsidiary, HSBC UK Bank, acquires Silicon Valley Bank’s UK branch for one British pound.
According to the filing, SVB UK had around $6.6B in loans and $8.1B in deposits as of March 10. The acquisition, announced on Monday, strengthens HSBC’s commercial banking franchise and enhances its ability to serve innovative and fast-growing firms, particularly in the technology and life-science sectors.
Noel Quinn, HSBC Group CEO, assured SVB UK depositors of continued safe banking with “HSBC’s strength, safety, and security”. The UK finance ministry told Decrypt via email that SVB UK customers can access their banking services as usual. While Chancellor of the Exchequer Jeremy Hunt assured that deposits are secure, without the need for taxpayer support.
As of writing, the price of HSBC Holdings is $34.60, 7.20% lower in the past 5 days. Likewise, SVB Financial Group traded around $106.04, declining 86.14% since 5 days ago.
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