The beleaguered bank’s UK subsidiary gave its staff $18 million in bonuses this week after HSBC purchased the institution in a rescue deal.
The bonus pool was described as “modest,” ranging from $18 million to $24 million, sources told Sky News.
Insiders said that had SVB UK not been solvent at the time of the acquisition, the bonuses would not have been paid. annual bonuses, just hours before the bank collapsed on March 10. Insiders said the staff bonuses would not have been doled out if the bank had not been solvent when it was acquired.SVB, previously the 16th-largest bank in the US Santa Clara, Calif.-based institution, after the financial institution suffered a run. The meltdown came shortly after SVB revealed a $1.8 billion loss on sales of its bonds, which spooked customers into worrying that they wouldn’t be able to withdraw their funds.
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