Source: https://www.bbc.com/news/business-64937251
A deal has been agreed for HSBC to buy the UK arm of the failed US Silicon Valley Bank (SVB), the government has announced.
Customers and businesses who have money deposited in SVB UK will be able to access it as well as other banking services as normal, a statement said.
The Treasury said the deal with HSBC involved no taxpayer money and the Bank of England said deposits were secure.
HSBC announced it had acquired the UK subsidiary of SVB for £1.
Noel Quinn, HSBC Group chief executive, said UK customers of SVB could "continue to bank as usual, safe in the knowledge that their deposits are backed by the strength, safety and security of HSBC".
The deal comes after SVB - which specialised in lending to technology companies - went bust in the US on Friday in the largest failure of a US bank since the financial crisis in 2008.
Its collapse sent shockwaves across the tech industry over the possible impact it could have on businesses, with some firms telling the BBC they could go bust if deposits were not secured.
Chancellor Jeremy Hunt said the tech sector was of "huge importance" to the British economy and supported hundreds of thousands of jobs.
He said the sale, facilitated by the government and the Bank of England, "ensures customer deposits are protected and can bank as normal, with no taxpayer support".
Mr Hunt added with HSBC being Europe's largest bank, "UK customers should feel reassured by the strength, safety and security that brings them".
HSBC's purchase of SVB's UK arm comes after the US Federal Reserve and Federal Deposit Insurance Corporation (FDIC) said on Sunday that depositors in the US would be fully protected.
Submitted March 13, 2023 at 03:42AM by n00bball https://ift.tt/tx8pg2u
