FinTech: Depositors Relieved After HSBC Acquires SVB UK For £1

March 13, 2023 | FinTech, News

The deal to sell SVB UK to HSBC was sewn up overnight under the aegis of the UK Govt and the Bank of England.

HSBC (LON: HSBA) has acquired Silicon Valley Bank UK for £1 in a rescue deal that was confirmed by the UK Treasury. HSBC will take on the accounts of SVB UK’s 3,500 customers with deposits worth more than £6.7bn, and the customers will be able to access their deposits and banking services as normal.

The acquisition will not involve taxpayer money, and customer deposits have been protected. (Sifted)

The UK government and the Bank of England worked through the night to finalize the deal. The Bank of England said the transaction aimed to “stabilize SVBUK, ensuring the continuity of banking services, minimizing disruption to the UK technology sector and supporting confidence in the financial system.”

“Today’s announcement supersedes the Bank’s 10 March statement that, absent any meaningful further information, it intended to apply to the Court to place SVBUK into a Bank Insolvency Procedure,” said the Bank of England. “Given the emergence of a credible purchaser for SVBUK the Bank has determined that using its resolution powers for stabilizing failing banks is appropriate.”

Other parties had expressed interest in buying the bank, including the Bank of London.

Noel Quinn, HSBC Group CEO, said, “This acquisition makes excellent strategic sense for our business in the UK. It strengthens our commercial banking franchise and enhances our ability to serve innovative and fast-growing firms, including in the technology and life-science sectors, in the UK and internationally.”

Related Story: Troubles At Silicon Valley Bank Trigger Warnings From Top Drawer VC Firms

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News
Digital Assets: Ledger, Maker Of Crypto Security Hardware, Raises Nearly All Of $100M Series C Round
March 31, 2023     Digital Assets, News, Venture Capital

Paris-based startup Ledger, which makes hardware wallets for cryptocurrency investors, has raised €100m ($109m) in funding, valuing the company at €1.3bn. The round was led by investors including Digital Finance…
FinTech: Cogo And Eliq Partner To Help Banking Customers Enhance The Energy Efficiency Of Their Homes
March 31, 2023     ESG and Sustainability, FinTech, News

Cogo, a fintech which collaborates with banks to assist customers in decreasing their carbon footprint as a carbon footprint management firm, is partnering with Eliq, a company that specializes in…
Venture Capital: The LSP Dementia Fund Closes €260M (US$283M) To Address Dementia, One Of The Most Significant Health Crises Of Our Era
March 31, 2023     Latest News, News, Venture Capital

The LSP Dementia Fund has reached a final close at €260 million (US$ 283 million), surpassing its initial target of €100 million. The fund, which is managed by EQT Life…
Artificial Intelligence: The DAGGER AI Model Gives Advance Warning Of Dangerous Solar Storms
March 31, 2023     Artificial Intelligence, News

Researchers have developed an AI-based model that combines satellite data and machine learning to predict where an impending solar storm will strike on Earth, offering 30 minutes of advance warning….