Singular Bank | HSBC has bought the UK subsidiary of Silicon Valley Bank (SVB) for £1 following the collapse of the regional bank. The purchase has been made through a private rescue provided by the UK government and the Bank of England. HSBC, Europe’s largest bank operating mainly in the Asian market, estimates the tangible equity of SVB’s UK subsidiary at around £1.4 billion.
The money of all SVBUK depositors is safe and secure as a result of this transaction and the bank will continue to operate as normal. SVB, based in California (USA), announced last Wednesday that it was seeking a capital increase to address its financial difficulties, which had led it to dispose of some $21 billion worth of investments. The announcement prompted many customers to withdraw their funds, after which regulators had to close the bank on Friday due to a lack of liquidity.
