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HSBC bought Silicon Valley Bank's UK arm for one pound

HSBC bought Silicon Valley Bank's UK arm for one pound

HSBC has scooped up Silicon Valley Bank’s UK operations for one pound.

The bank’s purchase has provided relief to many tech businesses that relied on SVB for funding.

Customers and firms can now withdraw their cash, which had been frozen until HSBC swept in amid talks with the UK government and the Bank of England to save the bank serving 3,000 business across the pond.

SVB - which made its name by lending capital to tech start ups - faced turmoil after US financial regulators banned it from trading, which sent the tech industry into panic amid the uncertainty.

The Chancellor of Exchequer, Jeremy Hunt said: "Some of them only had bank accounts with SVB UK and so for that reason we were faced with a situation where could have seen some of our most important companies, our most strategic companies, wiped out and that would have been extremely dangerous.”

He added that there was "never a systemic risk to our financial stability in the UK".

Toby Mather, the CEO and co-founder of the education start up Lingumi, remarked he had an incredibly “anxious weekend” about the news

He told BBC News: "We had enough money in bank accounts outside the UK and enough revenue coming through each week from our customers that we could look our staff in the eyes at nine o'clock this morning and say we can make payroll in two weeks, but it would have been very uncertain from then.”

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