Tuesday, December 5, 2023
HomeCryptoHSBC buys UK department of Silicon Valley Financial institution for £1

HSBC buys UK department of Silicon Valley Financial institution for £1

  • HSBC purchased the collapsed US financial institution Silicon Valley Financial institution (SVB) within the UK for £1.
  • SVB collapsed final week, sending shockwaves by means of the banking and monetary business in addition to crypto.
  • Companies and clients can now proceed to entry withdrawals as common.

HSBC, the British multinational financial institution and monetary providers big, has acquired the UK arm of the collapsed Silicon Valley Financial institution.

In response to a BBC information report on Monday, HSBC scooped up the SVB unit for simply £1.

The Financial institution of England and HM Treasury are working to assist SVB’s clients

The previous few days have been an actual scare for thousands and thousands of financial institution clients and companies, not solely within the US but additionally within the UK. The principle story right here has been the demise of Silicon Valley Financial institution – thought-about the second largest financial institution failure in US historical past by way of the sum of money concerned.

The market response was drastic, with financial institution shares hit exhausting as fears of contagion rose. Cryptocurrencies additionally rallied as Silicon Valley Financial institution was one of many high crypto-friendly banks, together with Silvergate Financial institution and Signature Financial institution. As CoinJournal reported earlier right this moment, US authorities have since shut it down.

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Because the US Treasury and FDIC labored to avert catastrophe for SVB depositors, together with the transfer to shut Signature Financial institution, UK authorities additionally stepped in to assist UK clients. This after lots of of expertise firms sounded the alarm when SVB collapsed.

The Financial institution of England and the UK authorities reportedly labored in a single day on Sunday to succeed in an settlement between SVB (UK) and HSBC. With the acquisition now in place, round 3,000 firms are set to get entry to their cash.

In response to a information replace from HM Treasury the HSBC-SVB deal concerned no taxpayers’ cash.

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