Banking giant HSBC has bought the 海角视频 arm of collapsed US lender Silicon Valley Bank after the Government and Bank of England stepped in to “facilitate” a private sale.
Chancellor Jeremy Hunt confirmed that all customer deposits have been protected under the deal, and that no taxpayer cash was involved. The deal comes after the American authorities moved to stop a potential banking crisis after the historic failure of Silicon Valley Bank, amid fears that the factors that caused the Santa Clara, California-based bank to fail could spread.
Mr Hunt said: “Today the Government and the Bank of England have facilitated a private sale of Silicon Valley Bank 海角视频. This ensures customer deposits are protected and can bank as normal, with no taxpayer support. I am pleased we have reached a resolution in such short order.
Read more: decarbonisation plans 'could unlock billions'
“HSBC is Europe’s largest bank, and SVB 海角视频 customers should feel reassured by the strength, safety and security that brings them.”
In a statement, the Bank of England said: “The Bank of England (Bank), in consultation with the Prudential Regulation Authority (PRA), HM Treasury (HMT) and the Financial Conduct Authority (FCA), has taken the decision to sell Silicon Valley Bank 海角视频 Limited (‘SVB海角视频’), the 海角视频 subsidiary of the US bank, to HSBC 海角视频 Bank Plc (HSBC). HSBC is authorised and supervised by the PRA and the FCA.
“This action has been taken to stabilise SVB海角视频, ensuring the continuity of banking services, minimising disruption to the 海角视频 technology sector and supporting confidence in the financial system.
“The Bank and HMT can confirm that all depositors’ money with SVB海角视频 is safe and secure as a result of this transaction. SVB海角视频’s business will continue to be operated normally by SVB海角视频. All services will continue to operate as normal and customers should not notice any changes.
Most Read
“Customers can continue to contact SVB海角视频 through the usual channels and borrowers should make any loan repayments to SVB海角视频 as normal. SVB海角视频 staff remain employed by SVB海角视频, and SVB海角视频 continues to be a PRA/FCA authorised bank.”
Dozens of companies listed in London updated shareholders on their exposure to the collapse of Silicon Valley Bank and its 海角视频 branch. More than 40 London-listed companies posted updates as markets opened on Monday, with Moonpig, THG, Future and Naked Wines among the most prominent.
Two AIM-listed companies – Diaceutics and Polarean Imaging – suspended their shares from trading but a majority of the businesses said there will be little to no direct impact on them from SVB’s collapse.
The US government has taken emergency steps in an attempt to prevent more instability among banks after the historic failure of Silicon Valley Bank and assured clients of the failed financial institution that they would be able to recover all of their money quickly. The announcement came amid fears that the factors that caused the Santa Clara, California-based bank could spread, and only hours before trading began in Asia.
Regulators had worked all weekend to try to come up with a buyer for the bank or broker another intervention, and as another bank, Signature Bank, was shuttered. The Treasury Department, Federal Reserve and Federal Deposit Insurance Corporation (FDIC) said on Sunday that all Silicon Valley Bank clients will be protected and have access to their funds and announced steps designed to protect the bank’s customers and prevent more bank runs.
READ NEXT: