HSBC has agreed to buy Silicon Valley Bank’s subsidiary in the United Kingdom for 1 pound — just over $1 — under a deal facilitated by the British government and the Bank of England following the U.S. lender’s collapse.
“This acquisition makes excellent strategic sense for our business in the UK,” the chief executive of HSBC, Noel Quinn, said in a statement Monday.
The British government said customer deposits would be protected “with no taxpayer support.”
“Customers of Silicon Valley Bank UK will be able to access their deposits and banking services as normal from today,” it said in a statement.
Under the terms of the agreement, HSBC’s U.K. subsidiary will finance the acquisition of Silicon Valley Bank UK Limited, which is expected to be completed immediately. The deal excludes all assets and liabilities of the parent company, SVB.
The U.K. deal comes after the Biden administration moved to protect SVB customers from losses, announcing Sunday night that depositors would have access to all their money