- HSBC has bought the UK division of failed US bank Silicon Valley Bank (SVB) for £1.
- The SVB collapsed last week, shocking not only the banking and financial industry, but also cryptocurrencies.
- Businesses and customers can now access withdrawals as normal.
British multinational banking and financial services giant HSBC has acquired the UK division of the collapsed Silicon Valley Bank.
According to the BBC report HSBC got SVB units for just £1 on Monday.
Bank of England and HM Treasury help SVB clients
The last few days have been truly terrifying for millions of bank customers and businesses in the United States as well as the United Kingdom. The main story here is the collapse of the Silicon Valley Bank, considered the second largest bank collapse in US history in terms of the amount of money involved.
The market reaction was dramatic, with banking stocks taking a heavy hit amid growing fears of contagion. Cryptocurrencies also plummeted as Silicon Valley Bank was one of the leading crypto-friendly banks alongside Silvergate Bank and Signature Bank. US officials have shut down the latter, as CoinJournal reported today.
As the US Treasury Department and the FDIC worked to avert a disaster for SVB depositors, including a move to close Signature Bank, UK authorities also had a clue to help their UK-based customers. rice field. This comes after hundreds of tech companies sounded the alarm following the SVB demise.
The Bank of England and the UK government reportedly worked overnight on Sunday to make a deal between SVB (UK) and HSBC. The acquisition will provide access to funding for approximately 3,000 companies.
according to news update From the UK Treasury, the HSBC-SVB transaction did not involve taxpayer money.