An internationally coordinated effort by the US and UK governments resulted in the sale of a subsidiary of Silicon Valley Bank after the bank collapsed in Santa Clara, California on Friday. Silicon Valley Bank is a financial institution with over $200 billion in assets.

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HSBC said it would acquire Silicon Valley Bank UK Ltd for one pound after both governments tried to find a bigger bank to buy it to secure £6.7bn ($8.1bn) of deposits.

Treasury chief Jeremy Hunt said the UK Treasury and the Bank of England “facilitated the sale.”

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“This morning the government and the Bank of England facilitated the private sale of Silicon Valley Bank UK HSBC,” Hunt tweeted early Monday morning.

Biden ‘happy’ with Fed’s response to Silicon Valley bank collapse

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“Deposits will be protected without the support of taxpayers. I said yesterday that we will take care of our tech sector and we have been working urgently to deliver on that promise,” said an MP representing South West Surrey.

British and American officials have been working all weekend to find buyers for the bank and its subsidiaries, whose collapse was the second-biggest bankrupt in history.

While the British authorities have successfully sold the subsidiary, US regulators have yet to do the same, at least publicly. The Federal Deposit Insurance Corporation (FDIC) took over SVB on Friday when the bank closed.

Subsequently, the FDIC held an auction with the Treasury Department on Saturday, but it is not clear when the results of the auction will be made public.

Separately, the Treasury Department, the Federal Reserve and the FDIC on Sunday announced additional measures to head off a potential financial crisis.

Silicon Valley bank entrance

Shortly after the SVB crash on Friday — the second-largest in US history since the Washington Mutual crash of 2008 — New York’s Signature Bank collapsed on Sunday. This is the third largest bankrupt in US history.

How the Silicon Valley bank burned down

In an effort to bolster confidence in the banking system, regulators have said that all depositors of failed institutions, Silicon Valley Bank and Signature Bank, will be protected and assured that all their money, including those whose assets exceed the $250,000 insurance limit, will be available on Monday.

They also announced measures to protect the bank’s customers and prevent additional bank runs.

“This move ensures that the US banking system continues to fulfill its vital role of protecting deposits and providing access to credit for households and businesses in a way that promotes strong and sustainable economic growth,” the agencies said in a joint statement.

Janet Yellen at a conference in Washington

Analysts believe the Fed’s new moves should be enough to calm financial markets.

“Monday will certainly be a busy day for many in the regional banking sector, but today’s action sharply reduces the risk of further contagion,” Jefferies investment bank economists predict.


Sunday’s action is the largest government intervention in the banking system since the 2008 financial crisis, albeit on a much smaller scale and impact.

The government has said that taxpayer money will not be made available to save deposits.

President Joe Biden said on Sunday evening, returning aboard Air Force One back to Washington, that on Monday he would directly address the problem of bank failures.

Joe Biden says

He also said the federal government is “strongly committed to holding fully accountable those responsible for this mess and continuing our efforts to strengthen the oversight and regulation of the big banks so we don’t find ourselves in this position again.”


SVB’s bankruptcy began as clients, mostly tech companies, rushed to get cash funding and withdrew their deposits.

The bank was forced to sell the bonds at a loss to cover the withdrawals, and regulators were soon forced to take action.