HSBC Steps in to Save SVB Customers in the UK

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The financial world is on edge as several major banks in the USA have collapsed in the last seven days, leaving investors worried about the safety of their deposits. With most of these banks having subsidiaries overseas, the fear is that this could trigger a global crisis.

The downfall of Silicon Valley Bank (SVB) last week sent shockwaves through the industry, and now other banks, like Signature, are following suit. While authorities scramble to secure the deposits of US clients, Andrew Beley of the Bank of England is reassuring the UK that their banking sector remains safe and unaffected.

However, SVB's clients in the UK were understandably concerned, so HSBC stepped in and acquired the UK subsidiary of SVB for the nominal sum of ￡1 ($1.2). "This acquisition makes excellent strategic sense for our business in the UK," explained HSBC chief executive Noel Quinn on Monday. Chancellor Jeremy Hunt also confirmed that all customer deposits were protected by the deal, with no taxpayer money involved. This move has saved over 3,000 customers with deposits worth a staggering ￡6.7 billion.

The news has brought a glimmer of hope to the streets of the UK, and it's clear that HSBC's intervention has been a lifeline for many. As we continue to watch the situation unfold, we can only hope that other banks around the world will follow HSBC's lead and take swift action to protect their customers.

PRINCE VISHITI.