It has been announced within the last hour that the Hong Kong and Shanghai Banking Corporation (HSBC) is acquiring the UK subsidiary of stricken Silicon Valley Bank for 1 pound sterling.
British born Noel Quinn the CEO of HSBC since 2020 said in a press release announcing the deal: “This acquisition makes excellent strategic sense for our business in the UK.”
HSBC has an Irish branch employing 350 people operating out of Grand Canal Square in Dublin’s Docklands.
Meanwhile on the other side of the Atlantic U.S. authorities have launched emergency measures to shore up confidence in the banking system after the dramatic collapse of Silicon Valley Bank on Friday.
There is a fear that there will be a run on other banks seem as vulnerable.
Regulators moved swiftly to close New York’s Signature Bank which was coming under pressure in the wake of SVB’s collapse.
In Europe, Credit Suisse is seen as the most vulnerable.
The share price of Switzerland’s second-largest bank are down 5.3% to €2.36 in the first hour of trading, a whopping 52% over the course of the last 6 months.