SVB UK saved from collapse with £1 deal

Kerem Gülen
Mar 13, 2023
Updated • Mar 13, 2023

HSBC made a notable announcement on Monday regarding their acquisition of Silicon Valley Bank's U.K. branch. The U.S. tech startup lender had recently declared bankruptcy, and after prolonged negotiations that lasted through the night, the deal was ultimately agreed upon. HSBC UK Bank, the bank's ring-fenced subsidiary, confirmed the acquisition of SVB U.K. for £1 ($1.21). It should be noted that the deal does not include the assets and liabilities of SVB U.K.'s parent company.

This latest development is of great significance to HSBC as it represents a strategic expansion of its operations in the U.K. financial market.

The CEO of HSBC Group, Noel Quinn, states that the deal "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."

As per HSBC's announcement on Monday, SVB U.K. had loans totaling approximately £5.5 billion and deposits of around £6.7 billion as of Friday, alongside a pre-tax profit of £88 million in 2022. The tangible equity of SVB U.K. is expected to be approximately £1.4 billion, with the final gain calculation from the acquisition to be revealed at a later date.

According to a statement from the U.K. Treasury, the sale of SVB U.K. was organized by the Bank of England and the U.K. Treasury in order to safeguard the deposits of SVB U.K. clients. This agreement was praised by British Finance Minister Jeremy Hunt, who remarked that it "ensures customer deposits are protected and can bank as normal, with no taxpayer support."

Hunt disclosed on Sunday that the U.K. government and the Bank of England were collaborating to "avoid or minimize" any negative impacts arising from SVB U.K. Meanwhile, U.S. regulators authorized measures to assist depositors and financial institutions affiliated with SVB's parent company in the United States.

In addition, the U.S. Treasury Department has classified SVB and New York-based Signature Bank as systemic risks due to concerns about contagion, permitting both institutions to be wound up in a manner that safeguards depositors.

About the future of startups

After the collapse of its U.S. parent company last Friday, numerous bidders submitted proposals to purchase SVB U.K., with concerns raised about the fate of various British tech and life sciences startups. The Bank of London has announced that it has headed a consortium of private equity firms that has officially presented a proposition to the U.K. Treasury and the Prudential Regulation Authority at the Bank of England.

According to Bank of London CEO Anthony Watson, SVB is crucial to the community and "cannot be allowed to fail given the vital community it serves."

"This is a unique opportunity to ensure the U.K. has a more diversified banking sector whilst allowing continuity of service to SVB's U.K. client base. It would be deeply disappointing for this moment to lead to further consolidation of power among big banks," he added.


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  1. The Dark Lady said on July 9, 2023 at 11:19 am

    Martin, I would appreciate that you do not censor this post, as it’s informative writing.

    Onur, there is a misleading statement “[…] GIFs are animated images …”. No, obviously you don’t seem to have take much notice of what you were told back in March regarding; Graphics Interchange Format (GIF).

    For example, (if you had read my replies within that thread, you might have learnt something useful). I even mentioned, “GIF intrinsically supports animated images (GIF89a)”.

    You linked to said article, [Related: …] within this article, but have somehow failed to take onboard what support you were given by several more knowledgeable people.

    If you used AI to help write this article, it has failed miserably.

  2. KeZa said on August 17, 2023 at 5:58 pm

    AI is stupid, and it will not get any better if we really know how this all works. Prove me wrong..

  3. Database failure said on August 18, 2023 at 5:21 pm

    Martin, [#comment-4569908] is only meant to be in: []. Whereas it appears duplicated in several recent random low-quality non relevant articles.

    Obviously it [#comment-4569908] was posted: 9 July 2023. Long before this thread even existed… your database is falling over. Those comments are supposed to have unique ID values. It shouldn’t be possible to duplicate the post ID, if the database had referential integrity.

  4. Howard Pearce said on August 25, 2023 at 12:24 pm

    Don’t tell me!

    Ghacks wants the state to step in for STATE-MANDATED associations to save jobs!!!

    Bring in the dictatorship!!!

    And screw Rreedom of Association – too radical for Ghacks maybe

  5. Howard Allan Pearce said on September 7, 2023 at 9:13 am

    GateKeeper ?

    That’s called “appointing” businesses to do the state’s dirty work!!!!!

    But the article says itself that those appointed were not happy – implying they had not choice!!!!!!

  6. owl said on September 7, 2023 at 9:50 am

    @The Dark Lady,
    @Database failure,
    @Howard Pearce,
    @Howard Allan Pearce,

    Note: I replaced the quoted URI scheme: https:// with “>>” and posted.

    The current is owned by “Softonic International S.A.” (sold by Martin in October 2019), and due to the fate of M&A, has changed in quality.
    Many Authors of bloggers and advertisers certified by Softonic have joined the site, and the site is full of articles aimed at advertising and clickbait.
    As it stands, except for articles by Martin Brinkmann, Mike Turcotte, and Ashwin, they are low quality, unhelpful, and even vicious. It is better not to read those articles.
    How to display only articles by a specific author:
    Added line to My filters in uBlock Origin:,.home-posts,.home-category-post:not(:has-text(/Martin Brinkmann|Mike Turcotte|Ashwin/))

    By the way, if you use an RSS reader, you can track exactly where your comments are (I’m an iPad user, so I use “Feedly Classic”, but for Windows I prefer the desktop app “RSS Guard”).
    RSS Guard: Feed reader which supports RSS/ATOM/JSON and many web-based feed services.

  7. Anonymous said on September 14, 2023 at 6:41 pm

    We all live in digital surveillance glass houses under scrutiny of evil people because of people like Musk. It’s only fair that he takes his turn.

  8. Anonymous said on September 18, 2023 at 1:31 pm

    “Operating systems will be required to let the user choose the browser, virtual assistant and search engine of their choice. Microsoft cannot force users to use Bing or Edge. Apple will have to open up its iOS operating system to allow third-party app stores, aka allow sideloading of apps. Google, on the other hand, will need to provide users with the ability to uninstall preloaded apps (bloatware) from Android devices. Online services will need to allow users to unsubscribe from their platform easily. Gatekeepers need to provide interoperability with third-parties that offer similar services.”

    Wonderful ! Let’s hope they’ll comply with that law more than they are doing with the GDPR.

  9. sean conner said on September 27, 2023 at 6:21 am

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