Giant Bank of England Bought Silicon Valley Bank’s Branch!

One of the UK’s biggest banks HSBCwith an application made on March 13, 2023 Silicon Valley Bank UK Limited (SVB UK) £1 ($1.21 at today’s exchange rate).

HSBC UK Acquires Silicon Valley Bank’s UK Branch for £1

UK Finance Minister Jeremy Hunt said deposits of SVB UK customers would be “protected without taxpayer support”.

HSBC Group CEO Noel Quinn said the acquisition also means that depositors at SVB’s UK branch “can continue to bank as usual, knowing that their deposits are backed by the strength, safety and security of HSBC.”

UK Finance Minister Jeremy Hunt tweeted that “deposits will be protected without taxpayer support”, while the UK Finance Ministry said via email that “SVB UK customers will have normal access to their deposits and banking services from today.”

This morning, the Government and the Bank of England facilitated a private sale of Silicon Valley Bank UK to HSBC

Deposits will be protected, with no taxpayer support

I said yesterday that we would look after our tech sector, and we have worked urgently to deliver that promise

— Jeremy Hunt (@Jeremy_Hunt) March 13, 2023

Like its California parent company, SVB UK’s clients included businesses in the tech and startup world. According to the filing, the branch held around $8.1 billion (£6.7 billion) in deposits and made loans of around $6.6 billion (£5.5 billion).

In a statement by his office, Jeremy Hunt said: “The UK’s technology sector is truly world-leading and is of great importance to the British economy, supporting hundreds of thousands of jobs.

“I said yesterday that we will take care of our technology sector and we have worked urgently to deliver on that promise and to find a solution that will give confidence to SVB UK’s customers.”

*Not investment advice.