The SVB disaster marks the collapse of one of the biggest American lenders in the history of The US. But this major bank failure left its mark on almost all parts of the globe.
Luckily enough, the nightmarish experience of the failed UK branch of the Silicon Valley Bank comes to an end on 13th March, Monday as HSBC comes to the rescue.
What do we know so far?
According to reports from CNN Business, HSBC was able to save thousands of British tech firms by acquiring the failed UK branch of SVB.
The HSBC move is so critical that had it not made its purchase, the UK SVB would have gone bankrupt, sending depositors into a frenzy.
HSBC, Europe’s largest bank, disclosed the £1 ($1.2) transaction early Monday morning, stating that it will go into effect “immediately.” SVB UK is a significant bank partner for the UK’s tech sector, and the failure of its parent bank in the US had tech leaders scurrying to figure out how to get their funds out to pay employees and meet operating expenses.
Other Helping Hands
On Saturday, Uncapped, the financial tech startup that lends to other startups, announced an emergency funding scheme to assist businesses with meeting their payroll and other responsibilities. Pisarz, the co-founder of uncapped, said the company had “hundreds” of applications from US and UK businesses by Monday and was still prepared to assist businesses impacted by the SVB failure. Moreover, Uncapped was ready to provide longer-term bridge loans to help with working capital.
According to HSBC CEO Noel Quinn, the acquisition allows SVB UK customers to continue banking as usual, secure in the knowledge that the strength, safety, and security of HSBC guarantee their deposits.
Related Stories:
HSBC and Mastercard Expand Crypto Footprint with New Trademark Applications
Hong Kong Regulator Pressures HSBC and Standard Chartered to Take on Crypto Clients
Sunny Leone dazzles in a silver satin gown with sparkly embroidery for her Cannes debut
British Comedian Jimmy Carr’s Debut India Tour – Dates Announced
Former Infosys president Mohit Joshi joins Tech Mahindra as CEO
NASA Confirms Launch Date for Its Massive Moon Rocket
TCS, Infosys, HCL Tech, Wipro, and Tech Mahindra Plan To Recruit 1.8 Lakh Freshers
Have an upcoming tech interview and are confused about the Dos and Don’ts? The ultimate guide for tech interviews of 2023
