The SVB disaster marks the collapse of one of the largest American lenders in US history. But this great banking collapse has left its mark in almost every part of the world.
Fortunately, the nightmarish experience of Silicon Valley Bank’s failed UK branch ends on Monday, March 13, when HSBC comes to the rescue.
What do we know so far?
According to reports from CNN Business, HSBC saved thousands of British tech companies by taking over SVB’s failed UK subsidiary.
The move by HSBC is so critical that Britain’s SVB would have gone bankrupt had it not made its purchase, sending depositors into a frenzy.
HSBC, Europe’s largest bank, announced the £1 ($1.2) transaction early Monday morning, saying it would take effect “immediately”. SVB UK is a major banking partner for the UK tech sector, and the failure of their parent bank in the US has prompted tech leaders to figure out how to scrounge their funds to pay staff and cover operating costs.
Other helping hands
On Saturday, Uncapped, the financial technology startup that makes loans to other startups, announced an emergency funding program to help companies meet their payroll and other responsibilities. Pisarz, Uncaped’s co-founder, said the company had received “hundreds” of applications from US and UK companies as of Monday and remains ready to support companies hit by the SVB bankruptcy. In addition, Uncapped was willing to provide longer-term bridging loans to support working capital.
According to Noel Quinn, CEO of HSBC, the acquisition will allow SVB UK customers to continue their banking as usual, safe in the knowledge that the strength and safety of HSBC will guarantee their deposits.
