The UK government has struck a last-minute rescue deal for SVB UK, as it aims to reassure the thousands of science and technology companies that have accounts with the bank.
The news follows the implosion of California-based Silicon Valley Bank, which US regulators shut on Friday. The collapse of SVB - which had an estimated $2.9tn of assets - has been described as the biggest financial crash of an individual bank since 2008.
After frantic weekend talks between the government, regulators, and prospective buyers, it was agreed that the UK arm of the collapsed bank would be acquired by HSBC for a symbolic £1.
The acquisition made “excellent strategic sense” and would complete immediately, said HSBC’s chief executive Noel Quinn.
Chancellor Jeremy Hunt confirmed the sale on Twitter and stressed that all customer deposits have been protected under the deal, with no taxpayer cash involved.
“I said yesterday that we would look after our tech sector, and...