HSBC Holdings will buy the British “daughter” of Silicon Valley Bank (SVB), which will save depositors’ money and prevent the credit institution from going bankrupt. In this respect informs British television channel Sky News.
HSBC Holdings may soon bail out SVB’s UK subsidiary, as HSBC prepares to announce a deal with the government to buy the bankrupt part of the bank.
The broadcast noted that British giant HSBC became a potential buyer of the English division of SVB on the evening of Sunday, March 12, and a “white knight” to save depositors’ money.
According to Sky News, the Bank of England may announce that depositors’ money is safe as part of the bailout deal, so the lender will continue to operate as usual only now under the control of HSBC. This will calm the country’s turbulent financial sector. While the bailout deal for HSBC is minor in terms of overall balance sheet, it will increase the organization’s influence in the country’s domestic market for corporate clients in the tech sector.
Early Monday RIA Novosti reportedIn Canada, the local “daughter” of the bankrupt Silicon Valley Bank has been placed under temporary government control by the Office of the Governor’s Office of Supervisory Financial Institutions (OSFI).