UK Prime Minister Rishi Sunak has underlined his relief that a resolution was found when it comes to providing British consumers with ‘confidence’ following the collapse of Silicon Valley.
Off the back of a deal which saw HSBC acquire the UK arm of the Silicon Valley Bank, a move that secured the deposits of Silicon Valley Bank’s UK arm, with HSBC paying a mere £1 to secure the stability of deposits within the bank.
Commenting on Linkedin, Sunak stated: “We have worked urgently over the weekend, listening to stakeholders and developing an appropriate solution to provide Silicon Valley Bank UK customers with confidence and security. I am pleased to be able to say we have reached a resolution.
“The good news is, customers of SVB UK will be able to access their deposits and banking services as normal from today.
“That’s because Silicon Valley Bank has been sold to HSBC. HSBC is headquartered in London, is the largest bank in Europe and is one of the world’s largest banking and financial services institutions, serving 39 million customers globally.
“This transaction has been facilitated by the Bank of England, in consultation with the HM Treasury and Jeremy Hunt, using powers granted by the Banking Act 2009.”
The Prime Minister went on to clarify that no taxpayer money is involved, as well as that to assure that customer deposits have been protected.
Sunak added that ‘I’m often painted as some kind of tech geek. That’s a label I’m actually proud of’, as he emphasised his relief and focus on ensuring stability in the space.
He said: “I will always be on the side of entrepreneurs, innovators, young people inventing the future. Because the biggest lesson I took from my time in California still guides me now. What really matters for economic success – is innovation. If we want our country to succeed, we need to do what we’ve always done and embrace new technologies, and the people and culture that creates them. No serious analysis of our prospects could conclude anything different.
“I hope SVB UK customers feel reassured today by the strength, safety and security that today’s news brings them, and excited about the opportunities a global bank like HSBC can give them to grow around the world.”
Sunak is currently in the US to meet President Joe Biden, who also sought to assure the markets this morning that the American banking system remains safe.
Addressing the White House, Biden said: “Thanks to the quick action in my administration over the past few days, Americans can have confidence that the banking system is safe.
“Your deposits will be there when you need them. Small businesses across the country that deposit accounts at these banks can breathe easier knowing they’ll be able to pay their workers and pay their bills. And their hardworking employees can breathe easier as well.”