Who performed the due diligence? What exactly did HSBC purchase? Does anyone know? Did they purchase everything, or just the “troubled assets”?
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.
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
Well hopefully they will continue the anti-white racism and pervert initiatives and “climate change” boondoggles of SVP.
Those were priceless!
;-)
If the liabilities and assets are excluded, just what DID they buy?