HSBC acquires SVB in the UK for 1GBP
Rishi Sunak was involved in the purchase procedure and negotiations between the parties.
Global markets experienced fluctuations with the Nikkei 225 (-1.11%), FTSE 100 (-1.69%), DAX 40 (-2.33%), CAC 40 (-2.19%), Dow Jones (-1.07%), S&P 500 (-1.45%), and Nasdaq 100 (-1.38%) all experiencing declines. The collapse of SVB Bank led to a 6% decrease in its stocks and a 2.5% decrease in EU stocks.
HSBC announced its purchase of the bank, and the message was released before the opening of trading. Customers will be able to access their deposits and receive the bank's services as usual. According to HSBC, the bank had loans of about 5.5 billion pounds ($6.7 billion) and deposits of 6.7 billion pounds. The announcement resulted in a 3.5% decrease in HSBC's stocks, a 12% decrease in Commerzbank's stocks, and a 9.4% decrease in Credit Suisse's stocks.
British Chancellor of the Exchequer, Jeremy Hunt, ruled out the possibility of a government bailout and preferred injecting capital into technology companies that may run into difficulties following the collapse of the bank