HSBC buys Silicon Valley Bank’s UK business, ending ‘nightmare’ for British tech

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HSBC has scooped up the UK arm of failed Silicon Valley Bank, securing the deposits of thousands of British tech firms that hold money at the lender.

Had a buyer not been found, SVB UK would have been placed into insolvency by the Bank of England following the stunningof its parent in the United States. Insolvency would have left customers with only deposits worth up to £85,000 — or £170,000 for joint accounts — guaranteed.

The acquisition should “end the nightmare thousands of tech firms had been experiencing over the past few days,” Susannah Streeter, head of money and markets at investing platform Hargreaves Lansdown, said in a statement. Uncapped had launched an emergency funding program Saturday to help companies meet payroll and other obligations. It had received “hundreds” of applications from UK and US firms by Monday, according to Pisarz, who said it remained ready to support firms affected by the SVB collapse. Uncapped is also offering longer-term bridge loans to help with working capital.

 

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