HSBC bought the UK arm of stricken Silicon Valley Bank for a symbolic £1.
Silicon Valley Bank is the biggest US lender to fail in more than a decade. Picture: BLOOMBERG
The deal, which sees one of the world’s biggest banks, with $2.9-trillion of assets, take the doomed British arm of the tech lender under its wing, brings to an end frantic weekend talks between the government, regulators, and prospective buyers. Asked about HSBC’s white-knight role, Hunt said the finance ministry’s priority had been to avoid using British taxpayers’ money. One pound is worth $1.21 .
Britain’s blue chip FTSE 100 index of shares was down 1% in early trading, after sliding 1.7% on Friday amid wider global market turmoil sparked by SVB’s collapse. HSBC shares were down 1.7%. “This acquisition makes excellent strategic sense for our business in the UK,” HSBC CEO Noel Quinn said in a statement.
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