Silicon Valley Bank's UK Arm Bought By HSBC For About $1

The U.K. government has announced that Silicon Valley Bank’s SIVB British arm has been sold to HSBC Holdings Plc. HSBC.

What Happened: The Treasury said in a statement, “Customers of SVB UK will be able to access their deposits and banking services as normal from today.” The Bank of England, in consultation with the Treasury, has facilitated this transaction using powers granted by the Banking Act 2009, stated the Treasury.

See Also: Over 100 Investors Unite And Sign Statement In Support Of 'Trusted And Long-Time Partner' Silicon Valley Bank 
The statement added, “No taxpayer money is involved, and customer deposits have been protected.”

HSBC, in a separate statement, said that its UK ring-fenced subsidiary, HSBC UK Bank plc, is acquiring Silicon Valley Bank UK Limited for £1 ($1.21).

Noel Quinn, the CEO of HSBC Group, said, “This acquisition makes excellent strategic sense for our business in the UK,” and added, “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.”

Why It's Important: The deal comes in the wake of the collapse of Silicon Valley Bank, a subsidiary of SVB Financial Group on Friday, following which the Federal Deposit Insurance Corp. assumed control of the bank.

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