HSBC Set to Rescue Silicon Valley Bank UK
The UK government has revealed that an agreement has been struck for HSBC to acquire the United Kingdom division of the ailing Silicon Valley Bank (SVB) in the United States.
The statement noted that customers and companies who have funds in SVB UK can access their money and obtain other banking services without any problem.
The Treasury declared that no public funds were used in their agreement with HSBC, while the Bank of England reaffirmed that deposits are safe.
HSBC declared that they had purchased the British branch of SVB for a total of one British pound.
Noel Quinn, the CEO of HSBC Group, assured customers of SVB who are based in the UK that their deposits are safe and secure, and that they can "continue to bank as usual" with the assurance of the strength and reliability of HSBC.
SVB, a bank focused on providing loans to tech firms, experienced the most substantial failure of an American bank since the economic downturn in 2008 when it went under on Friday.
The tech industry was rocked by the collapse of the company, with some companies warning the BBC that they might be forced to close their doors if their deposits were not safeguarded.
Jeremy Hunt, the Chancellor, expressed that the tech industry was exceptionally vital to Britain's economy and provided employment for hundreds of thousands of people.
He proclaimed that the sale, which was organized by the government and the Bank of England, "guarantees the security of customers' deposits and allows them to carry out banking operations as usual, with no taxpayer backing".
Mr Hunt highlighted the fact that HSBC is Europe's most prominent bank, stating "UK customers can take comfort in the strength, safety and security that this affords them".
On Sunday, the US Federal Reserve and FDIC declared that all depositors in the US are completely safeguarded, which led to HSBC's acquisition of SVB's British branch.