Proactive Investors - 7.07am: HSBC buys Silicon Valley Bank's UK arm
Silicon Valley Bank (UK) Ltd has today been sold to HSBC Holdings PLC, according to a statement from the Treasury.
The statement said customers of SVB UK will be able to access their deposits and banking services as normal from today.
This transaction has been facilitated by the Bank of England, in consultation with the Treasury, using powers granted by the Banking Act 2009.
No taxpayer money is involved, and customer deposits have been protected.
Making use of post-crisis banking reforms, which introduced powers to safely manage the failure of banks, this sale has protected both the customers of SVB UK and taxpayers.
Chancellor Jeremy Hunt said: "The UK’s tech sector is genuinely world-leading and of huge importance to the British economy, supporting hundreds of thousands of jobs. I said yesterday that we would look after our tech sector, and we have worked urgently to deliver on that promise and find a solution that will provide SVB UK’s customers with confidence."
“Today the government and the Bank of England have facilitated a private sale of Silicon Valley Bank UK; this ensures customer deposits are protected and can bank as normal, with no taxpayer support. I am pleased we have reached a resolution in such short order."
“HSBC is Europe’s largest bank, and SVB UK customers should feel reassured by the strength, safety and security that brings them.”
FTSE seen flat, HSBC lind up for SVB's UK arm
The FTSE 100 is expected to open little changed on Monday as the fall out from the collapse of Silicon Valley Bank rumbles on and with the Budget to come on Wednesday.
Spread betting companies are calling London’s lead index up 1 points in early exchanges.
British ministers and the Bank of England are racing to conclude a private sale of Silicon Valley Bank’s UK arm to HSBC before markets opened, according to the Financial Times.
The report said people briefed on the negotiations said potential bidders held conference calls with the Bank of England through the night. By 6am, HSBC had emerged as the leading white-knight bidder for SVB UK, with Noel Quinn, the bank’s chief executive, involved in the overnight talks, the FT said.
The news is also being reported by Sky which reports an announcement from the company and the Treasury is imminent.
In the US The Dow closed Friday down 345 points, 1.1%, to 31, 910, the Nasdaq Composite lost 199 points, 1.8%, to 11,139 and the S&P 500 fell 57 points, 1.5%, to 3,862. The small-cap Russell 200 index declined 58 points, 3.2%, to 1,769.
In London, results from Direct Line and Phoenix Group Holdings will be the early focus.