HSBC has acquired the UK division of the bankrupt Silicon Valley Bank for a nominal price of £1.

In a last-minute move, HSBC has agreed to purchase the collapsed Silicon Valley Bank UK, averting a potential crisis that could have caused chaos in the UK’s tech industry.

The deal was struck for a nominal fee of £1, following discussions over the weekend between lenders, start-up representatives, and government entities such as the Treasury. The bankrupt bank had loans totalling around £5.5bn and deposits of approximately £6.7bn and made a profit of £88m in the previous year.

The Bank of England, alongside the Prudential Regulation Authority and the Financial Conduct Authority, announced the acquisition this morning. The Bank stated that the action was taken to stabilize Silicon Valley Bank UK, minimize disruptions to the tech sector, and support confidence in the financial system.

The Bank and HM Treasury also confirmed that all depositors’ funds with the acquired bank are secure and that Silicon Valley Bank UK’s business will continue to operate normally, with no changes for its customers.

Silicon Valley Bank UK collapsed over the weekend, prompting the Bank of England to take control of the lender after a bank run on its US branch rendered it unviable.

The Chancellor, Jeremy Hunt, commented that the government and the Bank of England have successfully facilitated a private sale of the bank, which guarantees customer deposit protection and enables normal banking operations to continue without any taxpayer assistance. Hunt expressed his satisfaction with the quick resolution of the situation.

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