Isn't she, So Very Beautiful?
Posted on 03/13/2023 4:09:19 AM PDT by DoodleBob
LONDON — HSBC on Monday announced a deal to buy the U.K. subsidiary of collapsed U.S. tech startup lender Silicon Valley Bank, following all-night talks.
HSBC confirmed that its U.K. ring-fenced subsidiary, HSBC UK Bank, had agreed to acquire SVB U.K. for £1 ($1.21). The assets and liabilities of SVB U.K.'s parent company are excluded from the transaction.
The acquisition "strengthens our commercial banking franchise and enhances our ability to serve innovative and fast-growing firms, including in the technology and life-science sectors, in the U.K. and internationally," said HSBC Group CEO Noel Quinn.
"SVB U.K. customers can continue to bank as usual, safe in the knowledge that their deposits are backed by the strength, safety and security of HSBC."
As of Friday, SVB U.K. had loans of around £5.5 billion and deposits of around £6.7 billion, with £88 million of full-year profit before tax in 2022, HSBC highlighted in the Monday statement. The bank expects SVB U.K.'s tangible equity to be around £1.4 billion, but added that "final calculation of the gain arising from the acquisition will be provided in due course."
The sale, facilitated by the Bank of England in consultation with the U.K. Treasury, will protect the deposits of SVB U.K. clients, the Treasury said in a statement.
Shares of HSBC were down 3.4% around 9:30 a.m. London time, following the announcement of the transaction.
(Excerpt) Read more at cnbc.com ...
A good way to reel Britain back into the Union.
Who performed the due diligence? What exactly did HSBC purchase? Does anyone know? Did they purchase everything, or just the “troubled assets”?
The acquisition “strengthens our commercial banking franchise and enhances our ability to serve innovative and fast-growing firms, including in the technology and life-science sectors, in the U.K. and internationally,” said HSBC Group CEO Noel Quinn.
Does this guy read the news?
The UK never really left.
And it’s being made to pay for trying to Brexit, just like we’re being made to pay for voting for Trump.
The US, UK, and Germany...
Is SVB a bank...
Or a money launderer..?
On the subject of Germany...
https://www.reuters.com/business/finance/germany-imposes-moratorium-german-svb-branch-2023-03-13/
IMO, this is similar to 2008 when Bank of America acquired Merrill-Lynch for a similar price.
When the Bank of England is providing a backstop to any loses how much due diligence do you need to do. I think that is what happened, the UK wants to be a major player in the Technology field, SVB UK provides the banking services to many of the UK tech companies, the government is not going to allow them to fail due to a bank failure and told HSBC to buy them for a dollar and the Bank of England would provide all the money necessary to cover any loses and make depositors whole.
HSBC IS NOT Hot Sauce Bacon Cheese Bank
Hongkong and Shanghai Banking Corporation
The Hongkong and Shanghai Bank was founded by the Scottish banker, Thomas Sutherland, in the then-British colony of British Hong Kong on 3 March 1865, and in Shanghai a month later, benefiting from the start of trading into China, including opium trading
The Bank had too many bonds at close to zero %
Interest rates increased.
Those low interest loans took a sizable haircut off the capital.
Now, the bond holders, including Banks, are in trouble
“Or a money launderer..?”
IMO, probably.
Isn't she, So Very Beautiful?
Well hopefully they will continue the anti-white racism and pervert initiatives and “climate change” boondoggles of SVP.
Those were priceless!
;-)
“Marry my ugly daughter or I’ll kill you.”
...and shoot your dog.
;-)
P.S. If I catch you with a mistress I will break your leg.
So assets of £6.9 billion and liabilities of £6.7 billion if all the loans are listed at their market values and performing. More likely this is a money losing deal backed up (or could we say bailed out) by the Bank of England.
If the latter, this is beginning to smell like a three letter agency may be involved.
If the liabilities and assets are excluded, just what DID they buy?
Yesterday's newspaper.
HSBC announced it will give away free kittens to people who start a new savings account. Chinese restaurants excluded.
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