FTSE 100 Live March 13: HSBC on SVB bailout, BoE says deposits safe

HSBC steps in to buy Silicon Valley Bank UK

The Bank of England has sold Silicon Valley Bank’s UK subsidiary to HSBC, it confirmed this morning.

In a statement, the bank said: “This measure was taken to stabilize SVBUK, ensure continuity of banking services, minimize disruption to the UK tech sector and boost confidence in the financial system.”

All depositors’ money at SVBUK is safe and secure as a result of this transaction. SVBUK’s business will continue to be operated normally by SVBUK. All services will continue to operate as usual and customers should not notice any changes.

“SVBUK staff will remain employed by SVBUK and SVBUK will continue to be a PRA/FCA authorized bank.”

It added: “No other UK banks are directly materially affected by these measures or by the resolution of SVBUK’s US parent bank. The broader UK banking system remains safe, sound and well capitalised.”

Bank of London confirms bid to bail out Silicon Valley Bank UK

The Bank of London has confirmed it has submitted a bid to bail out Silicon Valley Bank UK after it collapsed this week.

But it’s likely to face competition, especially as the Standard believes the government is eyeing Barclays to take over the failed bank’s UK unit. According to the Financial Times, the government has also received interest from a potential Middle Eastern buyer.

Established in 2021, the Bank of London is a clearing bank that holds all of its deposits with the Bank of England. CFO Gavin Hewitt previously worked at SVB UK.

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