HSBC Acquires Silicon Valley Bank UK for £1 to Safeguard Customers and Taxpayers – What's Going On?

cryptonews.com:

Global banking giant HSBC has acquired the UK subsidiary of now-collapsed lender Silicon Valley Bank for £1 ($1.21) after all-night talks between the government, regulators, and other prospective buyers.

The deal excludes the assets and liabilities of SVB UK's parent company. 

As of March 10, the UK arm of SVB had loans of around £5.5 billion ($6.7 billion) and deposits of around £6.7 billion ($8.1 billion), HSBC said in an official announcement.

Furthermore, the bank had £88 million of full-year profit before tax in 2022. HSBC said it expects SVB U.K.'s tangible equity to be around £1.4 billion but added that the "final calculation of the gain arising from the acquisition will be provided in due course."

The acquisition "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," said HSBC Group CEO Noel Quinn. He added:

"SVB UK customers can continue to bank as usual, safe in the knowledge that their deposits are backed by the strength, safety, and security of HSBC. We warmly welcome SVB UK colleagues to HSBC, we are excited to start working with them."

The sale was facilitated by the Bank of England in consultation with the U.K. Treasury. HSBC added that the acquisition will be funded from existing resources and would be completed immediately.

The announcement came amid reports that British ministers and the Bank of England held talks with regulators and some prospective buyers all-night, racing to conclude a private sale of Silicon Valley Bank’s UK arm before markets opened on Monday. 

British Finance Minister Jeremy Hunt was reportedly in favor of a private sale as it would not then