HSBC Holdings Plc (HSBA) said that its U.K ring-fenced subsidiary, HSBC U.K. Bank, is acquiring Silicon Valley Bank U.K. (SVB U.K.) for £1 ($1.21), as per a filing.
As of Mar. 10, SVB U.K. had loans of around $6.6 billion and deposits of around $8.1 billion, the filing read.
Noel Quinn, HSBC Group CEO, said, “This acquisition makes excellent strategic sense for our business in the U.K. 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 U.K. and internationally.”
The sale, announced Monday, was facilitated by the U.K. government under “resolution” powers designed to wind-up failing lenders without destabilizing the financial system.
“Deposits will be protected, with no taxpayer support,” finance minister Jeremy Hunt tweeted Monday, adding that he had worked urgently to look after the country’s tech sector.
Late Friday night, the Bank of England tweeted that SVB U.K. would be put into insolvency, but that the lender had a limited presence in the country.
U.S. regulators on Sunday said that SVB depositors would be made whole and be able to access funds as of Monday, as they seek to stop the biggest bank failure since 2008 from undermining confidence in the financial system.
This article was originally published by CoinDesk.