1GBP transaction! After overnight negotiations, HSBC Group confirmed takeover of Silicon Valley Bank's UK subsidiary...

Abstract: After Silicon Valley Bank in the United States announced its bankruptcy last Friday, HSBC Group announced on Monday that it had acquired its UK subsidiary for one pound.

Before the opening of the UK stock market on Monday, HSBC Holdings urgently announced that1Acquisition of a British subsidiary of Silicon Valley Bank for £（SVB UK）The transaction will take effect immediately.

(Source: London Stock Exchange)

According to the announcement, as of last Friday, the deposits and loans of British banks in Silicon Valley were as follows:67£ 100 million and55Billion pounds.2022The bank obtained a total of8800A pre tax profit of £ 10000. Preliminary estimate of the tangible common equity of Bank of England in Silicon Valley is14Billion pounds. HSBC emphasized that the assets and liabilities of the bank's US parent company are not related to this transaction.

HSBC GroupCEOPray for the Year of Glory （Noel Quinn）In the statement, it was stated that this acquisition has excellent strategic significance for the company's UK business, not only enhancing its commercial banking business, but also enabling the company to better serve innovative and high growth enterprises, such as the technology and life sciences sectors.

According to multiple UK media reports such as The Financial Times and Sky News, this transaction was also the result of overnight negotiations between the UK government, the central bank, and related companies.

British Finance Minister Jeremy Hunter, who stayed up all night, scheduled early London time7Social media outlets emphasize that the government and central bank have helped promote transactions between HSBC and Silicon Valley UK, and all depositors' deposits will be safe and sound. Like his American counterparts, the British finance minister also emphasized that the problems of British banks in Silicon Valley do not require taxpayers to pay for them.

(Source: Social media)

The media revealed that in addition to Hunter, British Prime Minister Sunak, who happened to be in California at the time of the incident, also participated in the emergency consultation. The Bank of England Governor Bailey, City of London Minister Andrew Griffiths, and the head of financial regulatory authorities also stayed up all night together.

For the UK government, resolving the issue before the opening of trading on Monday can avoid pressure to introduce measures to protect depositors. Moreover, the Bank of England had previously issued a clear warning that it would push Silicon Valley UK into bankruptcy, making weekend sales even more urgent.

According to people familiar with the sale process, in the sale process in Silicon Valley UK, in addition to HSBC, which ultimately became the "White Knight", including JPMorgan ChaseOakNorthBanks and London banks have expressed interest, and even a consortium located as far away as the United Arab Emirates was once interested in taking action. British banks in Silicon Valley have independent balance sheets, which is also why buyers are particularly enthusiastic. The US parent company is still in a state of neglect, forcing the US government and Federal Reserve to step in to rescue the market.

Therefore, after the release of the transaction news, Bank of London quickly issued a statement stating that this would be a "missed opportunity" for supporting competition and innovation. This is once again a bank that provides poor services to British companies year-round, benefiting from its market leading position.

(Source: Social media)

Silicon Valley Bank of England has approximately3300UK clients, including many startups and venture capital funds, but there are also many accounts with balances below8.5The limit for deposit insurance of £ 10000. For owning3900For HSBC, which has ten thousand clients, this transaction will clearly not have a significant impact. The company will5More information on this transaction was disclosed in the quarterly report released at the beginning of the month.

With the immediate effect of the sale transaction, the Bank of England has also issued a statement confirming that the bank will continue to operate normally, including customers and employees of Bank of England in Silicon Valley, whose financial business and work will continue as usual.

Article source: Cailian News Agency