HSBC rescues UK arm of Silicon Valley Bank

Technology startups and investors have avoided potential losses after the government brokered a deal for HSBC to buy Silicon Valley Bank’s (SVB) UK operations for just £1.

The deal, which protects the finances of SVB UK’s 3,500 customers, invalidates the Bank of England’s decision to place it into insolvency – a move prompted by a run on the bank after fears were raised over the US parent company’s balance sheet.

Chancellor Jeremy Hunt explained: “This morning, the government and the Bank of England facilitated a private sale of Silicon Valley Bank UK to HSBC. Deposits will be protected, with no taxpayer support. I said yesterday that we would look after our tech sector, and we have worked urgently to deliver that promise.”

HSBC chief executive Noel Quinn said: “This acquisition makes excellent strategic sense for our business in the UK. It strengthens our commercial banking franchise and enhances our ability to serve innovative and fast-growing firms, including in the technology and life-science sectors, in the UK and internationally.”

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