For a symbolic one pound, HSBC purchased the UK division of the failing Silicon Valley Bank on Monday, saving a crucial British lender for technology start-ups and assisting in containing the repercussions from the worst bank failure since the financial crisis. The action was taken after US regulators took steps to protect deposits and stop any further spillover from the unforeseen failure of its parent Silicon Valley Bank. The transaction, which sees one of the largest banks in the world, with $2.9 trillion in assets, take the failing British branch of the internet lender under its wing, ends the hectic weekend negotiations between the government, regulators, and potential purchasers.
"HSBC is Europe's largest bank, and SVB UK customers should feel reassured by the strength, safety and security that brings them," Britain's finance minister Jeremy Hunt said.
"We were faced with a situation where we could have seen some of our most important companies - our most strategic companies - wiped out, and that would have been extremely dangerous," Hunt told reporters.