The Bank of England has confirmed today that HSBC UK will buy Silicon Valley Bank’s (SVB) UK unit in an attempted rescue deal.
The central bank said the action had been taken to stabilise Silicon Valley Bank UK Limited’s banking services after news broke over the weekend of the collapse of the California-based bank.
Jeremy Hunt, UK chancellor tweeted: “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.”
SVB Financial Group is the largest banking failure since the 2008 financial crisis, according to Reuters reports. The failure unfolded on Friday when California bank regulators closed the bank, which did business as Silicon Valley Bank.
The start-up and fintech-focused bank started selling its bonds last week at steep losses due to cash shortage, which led ultimately to a run on the bank.
HSBC bought the UK arm of SVB for £1. The sale was facilitated by the BoE and protects the depositors and secures the start-ups’ future.
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