In a dramatic turn of events, HSBC has come to the rescue of the British arm of Silicon Valley Bank (SVB), which had been struggling after the failure of its US parent. The deal was announced on Monday, following frantic weekend talks that involved UK and US authorities.
According to reports, the US authorities have backed depositors at SVB, which means that customers in the UK will not lose their money. This news came as a relief to many SVB customers who had been anxious about the fate of their deposits.
The deal between HSBC and SVB ends the uncertainty that had been hanging over the bank’s UK operations. It is understood that HSBC will take over the assets and liabilities of SVB’s British arm. The terms of the deal have not been disclosed.
The British finance minister, who had been closely monitoring the situation, welcomed the news of the deal. In a statement, he said: “I am pleased that the deposits of SVB customers in the UK are safe. This is a testament to the strength and resilience of the UK banking system.”
The failure of SVB’s US parent had caused concern in the stablecoin market over the weekend, but the announcement of the deal between HSBC and SVB has helped to restore confidence. By Monday afternoon, cryptocurrencies were rallying and the stablecoins had regained their pegs.
Overall, the news that HSBC has rescued the British arm of SVB has been greeted with relief. The fact that US authorities have backed depositors has helped to restore confidence in the banking system, and the stability of the stablecoin market. With the deal now in place, customers of SVB can breathe a sigh of relief.
