Only a few days after the spectacular failure of Silicon Valley Bank’s operations in the United States, HSBC purchased the United Kingdom branch of the bank for the equivalent of $1.2 (one pound).
With the collapse of SVB UK’s parent company on Friday, the Bank of England ruled that the subsidiary should be declared insolvent.
The Bank of England has issued a statement in which it claims to be able to “ensure that all depositors’ money with SVB UK is safe and secure as a result of this transaction.”
The largest bank in Europe made the announcement of the acquisition early on Monday morning and stated that the transaction will take “immediate” effect.
The Chief Executive Officer of HSBC, Noel Quinn, issued the following comment on the deal: “SVB UK clients can continue to bank as normal, comfortable in the knowledge that their savings are guaranteed by the strength, safety, and security of HSBC.” [citation needed]