HSBC has bought the UK arm of Silicon Valley Bank (SVB) after fears the tech-focused lender would collapse. The deal was facilitated by the Bank of England (BoE) and the UK Government.
SVB was on the brink of collapse after it suffered a liquidity crisis due to money being tied up in long-term, low-risk bonds. Its situation became dire news of its situation caused a run on its deposits.
The US bank focused heavily on the tech sector, meaning many tech businesses were at risk of losing their deposits. But today the Government announced that a deal had been made to save the UK arm of SVB.
