The UK Treasury and the Bank of England have “facilitated the sale″ of Silicon Valley Bank UK to HSBC, ensuring the security of 6.7 billion pounds ($8.1 billion) of deposits.
British officials worked throughout the weekend to find a buyer for the UK subsidiary of the California-based bank that failed last week.
“This morning, the government and the Bank of England facilitated a private sale of Silicon Valley Bank UK to HSBC,″ Treasury chief Jeremy Hunt said in a tweet. “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 said it will acquire Silicon Valley Bank UK Ltd for one pound (€1.13).
US regulators also worked all weekend to try to find a buyer for the bank. Those efforts appeared to have failed on Sunday, but US officials assured all depositors at the failed institution that they could access all their money quickly.
In a sign of how the bank’s collapse sent shockwaves across the financial sector, regulators announced that New York-based Signature Bank had also failed and was being seized on Sunday.
At more than $110 billion in assets (€103 billion), Signature Bank is the third-largest bank failure in US history.
Our journalists are working to update this story.