PanamaTimes

Saturday, Sep 07, 2024

Silicon Valley Bank’s UK arm sees sharp inflows after £1 HSBC rescue

Silicon Valley Bank’s UK arm sees sharp inflows after £1 HSBC rescue

The British arm of Silicon Valley Bank has seen its deposit base rise back above £7bn - 10 days after steep withdrawals led it to the brink of insolvency.
The British arm of Silicon Valley Bank (SVB UK) has seen hundreds of millions of pounds of deposit inflows in the wake of its £1 rescue takeover by HSBC.

Sky News understands that SVB UK's deposit base now stands at over £7bn - 10 days after Europe's biggest lender agreed to buy the business in a deal orchestrated by the Bank of England.

Figures provided by the central bank and published by the Treasury Select Committee this week showed nearly £3bn of deposits were withdrawn from the technology-focused bank between 9 and 10 March.

The run on its UK deposit base came after its US parent company fell victim to a run after failing to raise capital from investors.

One source said more than £300m had been parked with SVB UK by business customers since the beginning of last week, with net inflows being recorded each day.

HSBC is planning to rebrand SVB UK in the coming months, although it is unlikely to use the parent's name and is instead chose to opt for the creation of a standalone brand.

An insider pointed to the precedent of HSBC's First Direct internet bank as a possible model for the future of the SVB UK business.

HSBC's decision to step in and rescue SVB UK for £1 provided salvation for thousands of early-stage UK companies which faced losing access to their deposits and even forfeiting the funds altogether in the event of an insolvency.

The US government is now engaged in a process to sell SVB's parent there.

HSBC declined to comment.
Comments

Brad 1 year ago
More government propaganda and bank propaganda.
Nobody's keeping cash in these banks.
I personally pulled out 22 billion.
Screw your banks.
Gaslighting the public is over twits

Newsletter

Related Articles

PanamaTimes
0:00
0:00
Close
BRAZIL’S SUPREME COURT MINISTER ORDERS EXPLANATION ON X BLOCKING
Porn streamer OnlyFans paid owner $630mn in dividends
Donald Trump will not face sentencing over his 'hush money' conviction before the US presidential election on November 5, after a Manhattan judge granted his request to delay the proceeding
Return of Brazilian Artworks to Bahia
France Pilots Mobile Phone Ban in Schools
WHO-Led Study Finds No Link Between Mobile Phones and Brain Cancer
Kamala Harris is in Detroit and has a new accent again
EU Rejects Maduro’s Election Win Claim in Venezuela
Former Red Brigades Member Arrested in Argentina After 40 Years on Run
Elon Musk Accuses Brazilian Supreme Court Justice of Election Interference
Universe May Have Had a Pre-Big Bang 'Secret Life'
Ecuador's Narco Violence Threatens Scientists and Conservation Efforts
Brazilian Judge Alexandre de Moraes Blocks Elon Musk's X
Nаkеd American woman gropes security
Tsimane Tribe: Secrets to Health and Slow Ageing
OpenAI Blocks Iranian Group's ChatGPT Accounts for Election Interference
WHO Declares Mpox Global Health Emergency Again
Decline in World Records at Paris Olympics: An Analysis
EU Pressures Elon Musk Over Trump Interview
UN Reports Lowest Global Youth Unemployment Rate in 15 Years
Fatal Plane Crash Near Sao Paulo
Snoop Dogg: The Feel-Good Spirit of the Paris Olympics
McDonald's Worker Sets Restaurant On Fire Over Customer Frustration
Kamala Harris Confirmed as Democratic Candidate for US Presidential Election
Controversies at the Paris Olympics
Elon Musk Accepts Fight Challenge from Venezuelan President Nicolas Maduro
First Case of 'Virgin Birth' in Endangered Shark Species in Italy
G20 Fails to Reach Agreement on Global Billionaire Tax
Mexican Drug Lords El Mayo and El Chapo's Son Arrested in Texas
World's Hottest Day Recorded on July 21
Joe Biden Withdraws from 2024 US Presidential Race
A Week of Turmoil: Key Moments in US Politics
Global IT Outage Sparks Major Concerns
Global IT Outage Unveils Digital Vulnerabilities
Secret Service Criticized for Lack of Sniper Protection During Trump Shooting
Colombian Court Annuls Amazon Tribes’ Carbon Credit Deal
Sunita Williams Safe on ISS, to Address Earth on July 10
Biden Affirms Commitment To Presidential Race
Boeing Pleads Guilty Over 737 MAX Crashes
Beryl Storm Hits Texas, Killing 2 and Causing Major Power Outages
2024 Predicted to Be World's Hottest Year
Macron Faces New Political Challenges Despite Election Relief
Florida Man Arrested Over Attempt to Withdraw One Cent
Anger mounts at Biden’s top team after disastrous debate
Bolivian President Luis Arce Denies 'Self-Coup' Allegations
Steve Bannon Begins 4-Month Prison Sentence
Biden Warns of 'Dangerous Precedent' After Supreme Court Immunity Ruling in Trump Case
Elon Musk Accuses Kamala Harris of Misleading Post on Trump's Abortion Stance
Hunter Biden Sues Fox News Over 'Revenge Porn' Allegations
New York Times Editorial Board Urges Biden to Exit Presidential Race
×