Bitcoin

TL;DR Breakdown<ul><li>HSBC acquires Silicon Valley Bank UK for just £1 in a dramatic fire sale.</li><li>The acquisition will protect the deposits of SVB UK clients, the Treasury said in a statement.</li><li>SVB UK has 3,300 UK clients, including start-ups, venture-backed companies, and funds.</li></ul>In an all-night negotiation led by Prime Minister Rishi Sunak and the Bank of England, HSBC has<a href="https://www.londonstockexchange.com/news-article/HSBA/hsbc-acquires-silicon-valley-bank-uk/15871682" rel="noopener noreferrer nofollow"> </a>become the leading bidder for Silicon Valley Bank’s UK arm.SVB UK was swept up in the implosion of California-based Silicon Valley Bank, which <a href="https://www.cryptopolitan.com/doj-takes-on-binance-voyager-acquisition/" rel="noopener noreferrer nofollow">US</a> regulators shut down on Friday. The bank’s UK arm has 3,300 clients, including start-ups, venture-backed companies and funds.<h2 id="header-0">HSBC’s acquisition of SVB UK</h2>The acquisition made “excellent strategic sense” and would complete immediately, said HSBC’s chief executive Noel Quinn. HSBC emerged overnight as the white-knight bidder for SVB UK, paying a symbolic £1 for the bank.The sale of SVB UK, which has £6.7bn of deposits and £5.5bn of loans, was the preferred choice of Chancellor Jeremy Hunt, avoiding a big government intervention to protect depositors.The government spent the weekend racing to try to sell SVB UK and put together a back-up plan to support companies that have deposits trapped in the lender. US regulators on Sunday evening said SVB’s American depositors would have access to all their money on Monday.HSBC CEO Noel Quinn said the acquisition “strengthens our commercial banking franchise and enhances our ability to serve innovative and fast-growing firms, including in the technology and life-science sectors, in the UK and internationally.SVB UK customers can continue to bank as usual, safe in the knowledge that their deposits are backed by the strength, safety and security of HSBC.”<h2 id="header-1">A Privatisation Plan for SVB UK</h2>The Bank of London led a consortium of private equity firms that submitted a formal proposal to the UK Treasury and the Prudential Regulation Authority at the Bank of England to privatise SVB UK.The Bank of London CEO, Anthony Watson, said that SVB UK “cannot be allowed to fail given the vital community it serves. This is a unique opportunity to ensure the UK has a more diversified banking sector, whilst allowing continuity of service to SVB’s UK client base. It would be deeply disappointing for this moment to lead to further consolidation of power among big banks.”While the rescue of SVB UK was welcomed by UK tech groups, broader equity markets remained on edge. European stocks fell in early trading, but US futures rose as investors digested regulators’ actions over the weekend.The US government set out emergency measures to protect the banking system after the collapse of California-based SVB, the biggest US bank failure since 2008.The BoE had warned it planned to put SVB UK into insolvency after the collapse of its parent. The bank’s resolution was taken “to stabilise SVB UK, ensuring the continuity of banking services, minimising disruption to the UK technology sector and supporting confidence in the financial system.”The overnight mission to rescue SVB’s UK arm was led by Sunak, Hunt, and City minister Andrew Griffith, while Andrew Bailey, BoE governor, and Sam Woods of the Prudential Regulation Authority were also involved. Rothschilds advised on the sale.HSBC’s acquisition of SVB UK will protect the deposits of SVB UK clients, the UK Treasury said in a statement. Jeremy Hunt stressed that the deal “ensures customer deposits are protected and can bank as normal, with no taxpayer support.The UK’s tech sector is genuinely world-leading and of huge importance to the British economy, supporting hundreds of thousands of jobs.”Disclaimer: The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

Shocking: HSBC acquires Silicon Valley Bank UK for just £1

Tabla de contenidos

Cryptopolitan_News

Otros artículos publicados el 13 mar 2023

U.S Authorities Shut Down Signature Bank After SVB Closure

Bitcoin Ordinals - A beginner guide

Definitely a yes!

Top 3 Decentralized Exchanges in Solana

Hot News Recap

BinaryX Releases Trailer and Opens Beta Test For Futuristic Space Game Project Matthew

¡Únete a nuestro boletín gratuito para recibir actualizaciones diarias de criptografía!