HSBC buys UK operations of Silicon Valley Bank – POLITICO

LONDON – HSBC has acquired the UK assets of the now defunct Silicon Valley Bank, the UK Treasury announced today. No UK taxpayer money is involved and customer deposits have been protected, according to the announcement.

The news brings welcome relief to local startups and venture capitalists who had spent the weekend worrying about their future after the collapse of the US bank.

“Today the government and the Bank of England facilitated a private sale of Silicon Valley Bank UK; this ensures that customer deposits are protected and can be banked as normal, without taxpayer support,” Chancellor Jeremy Hunt, UK Treasury chief, said in a statement. The California bank’s UK deposits are estimated to have a combined value of $7 billion.

“I said yesterday that we would take care of our tech sector, and we have worked urgently to deliver on that promise,” Hunt said.

HSBC has seen competition from other rivals, including the Bank of London, seeking to snap up the British bank focused primarily on providing financial services. HSBC, which is Europe’s largest bank, said in a statement that it was acquiring the UK branch of SVB for £1, according to the Guardian.

The deal “saved hundreds of the UK’s most innovative businesses today”, said Dom Hallas, executive director of the Coalition for a Digital Economy, who was among those leading the charge to get a deal this weekend.