HSBC Buys UK Unit Of Shuttered SVB For $1

HSBC agreed to a deal to buy the UK arm of Silicon Valley Bank Monday as countries around the world assessed the impact of the US bank’s sudden collapse.

Photo Insert: HSBC, the biggest bank in Europe said it purchased the SVB unit for £1 ($1.21) in a deal brokered by the UK government and the Bank of England.

HSBC, the biggest bank in Europe said it purchased the SVB unit for £1 ($1.21) in a deal brokered by the UK government and the Bank of England. As of Friday, SVB’s UK unit had loans of £5.5 billion and deposits of around £6.7 billion, HSBC said.

“The UK’s tech sector is genuinely world-leading and of huge importance to the British economy,” said Chancellor of the Exchequer Jeremy Hunt.

“This ensures customer deposits are protected and can bank as normal, with no taxpayer support,” Callum Keown reported for Barron’s Daily.

Asian markets were mixed Monday but European stocks fell, led by banks, as investors assessed the health of the banking sector as well as efforts by regulators to limit the fallout.

Ireland’s Department of Finance said it is monitoring the potential impact on Irish companies, according to national broadcaster RTE.

The US bank committed a further $300 million in loans to Irish tech and life sciences companies in 2019, taking its total to $500 million, through the government-backed Ireland Strategic Investment Fund.

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