• HSBC bought the UK arm of collapsed US bank Silicon Valley Bank (SVB) for £1.
• SVB collapse sent shock waves across the banking and finance industry as well as crypto.
• Bank of England and HM Treasury worked to help SVB customers, with HSBC’s acquisition allowing around 3,000 businesses to access their money.
HSBC Buys UK Arm of Silicon Valley Bank
HSBC, the British multinational bank and financial services giant, has acquired the UK arm of the collapsed Silicon Valley Bank (SVB) for just £1. The last few days have been a real scare to millions of bank customers and businesses in both the US and UK due to SVB’s collapse – deemed the second largest such banking collapse in US history in terms of amount of money involved.
Impact on Banking Industry & Crypto
The market reaction was drastic, with bank stocks hit hard as contagion fears mounted. Cryptocurrencies also plummeted as Silicon Valley Bank was one of the main crypto-friendly banks, alongside Silvergate Bank and Signature Bank. As CoinJournal reported earlier today, US authorities have shut down the latter.
UK Authorities Take Action
As US authorities worked to avert a calamity for SVB depositors, including moving to shut down Signature Bank, authorities in the UK also took cue to help UK-based customers. This is after hundreds of tech firms had sounded the alarm as SVB collapsed. The Bank of England and HM Treasury reportedly worked overnight Sunday to facilitate a deal between SVB (UK) and HSBC. With this acquisition now in place, around 3,000 businesses are able to access their money without any taxpayer money being used in this transaction.
Businesses Access Withdrawals As Normal
Businesses and customers can now continue to access withdrawals as normal following HSBC’s acquisition of SVB’s UK arm for £1. This news comes at a time when banks are facing an unprecedented crisis due to COVID-19 related economic hardship – making these acquisitions even more crucial than ever before in order maintain stability within banking systems globally.
In conclusion, this news brings relief for many people who were worried about their deposits after Silicon Valley Banks‘ collapse – thanks largely due to swift action from both US and UK authorities along with HSBC’s quick decision making process which allowed them acquire SVB’s UK arm for just £1