HSBC Invests Two Billion Pounds in Silicon Valley Bank for Just One Pound

British banking group HSBC, the new owner of Silicon Valley Bank in the UK, has announced that it intends to invest £2bn in the aforementioned branch of the bank.

Group CEO Noel Quinn and Ian Stewart, head of Tech Investors UK in London, said the bank is committed to committing billions of pounds to ensure that Silicon Valley UK business continues as usual.

Quinn called the bank’s acquisition “strategically logical,” stressing that it will improve the bank’s position in the technology and life sciences sectors.

The bank representative confirmed the amount to be transferred.

HSBC acquired Silicon Valley Bank’s UK arm for a token £1 ($1.22) on Monday, at the height of a busy weekend when UK ministers and bankers were looking for ways to calm the markets and keep savers’ money safe.

British Prime Minister Rishi Sunak said there was no systemic risk for British banks after the collapse of the Silicon Valley bank in the US.

Source: dpa

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