The HSBC bank, the largest in Europe, has announced today the acquisition of the subsidiary in the United Kingdom of the American entity Silicon Valley Bank (SVB), intervened last Friday after discovering that it lacked 2,250 million to balance its balance sheet. The operation has been closed at a symbolic price: one pound.
In a statement sent to the Hong Kong Stock Exchange, where it is listed since it operates mainly in the Asian market, HSBC estimates the tangible capital of the SVB’s British subsidiary at around 1,400 million pounds (1,694 million dollars, 1,581 million dollars). . “This acquisition makes excellent strategic sense for our UK businesses. It strengthens our commercial banking franchise and enhances our ability to serve fast-growing and innovative companies, including in the technology and life sciences sectors, both in UK and internationally,” said the group’s CEO, Noel Quinn.
British Finance Minister Jeremy Hunt has assured on his Twitter account that both the UK Government and the Bank of England have facilitated the sale of the British branch of Silicon Valley Bank to HSBC. “In this way, the deposits of the clients of the British subsidiary of SVB are protected and they can carry out their banking operations normally, without the support of taxpayers,” Hunt said. In addition, he recalled that HSBC is the largest bank in Europe, so the clients of the British subsidiary of SVB “should feel calm about the solidity, security and protection it provides them”.
The bankruptcy of SVB Financial Group, an entity focused on tech startups, is the biggest banking collapse in the United States since the 2008 financial crisis. More than 250 British executives warn that the bankruptcy of the banking group could have a significant impact on technology companies from the country.
In this sense, the Bank of England has explained that the purchase of the British subsidiary by HSBC has been taken “to stabilize” the situation, “ensuring the continuity of banking services, minimizing the interruption of the technology sector in the United Kingdom and supporting confidence in the financial system”.
