HSBC Holdings – the largest banking institution in the United Kingdom – will reportedly purchase Silicon Valley Bank UK Limited (SVB UK) for £1 ($1.20).
Silicon Valley Bank made the headlines last week, revealing liquidity issues and balance sheet holes. This triggered huge panic among venture capital firms, who reportedly advised investors to withdraw their funds from the bank. After failing to raise the necessary capital to stay afloat, the financial regulators of California shut down SVB.
“This acquisition makes excellent strategic sense for our business in the UK. It 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.”
“No other UK banks are directly, materially affected by these actions or by the resolution of SVB UK’s US parent bank. The wider UK banking system remains safe, sound, and well capitalized.”