The Silicon Valley Bank (SIVB), which failed to generate enough money to cover losses from the sale of assets, collapsed on Friday, March 10. The most recent story from BBC News indicates that HSBC UK (HSBC) has acquired SVB’s U.K. division. According to Bank of England sources, HSBC’s purchase of SVB UK was more of a preventative measure.

If HSBC didn’t make the transaction, SVB UK may also experience financial difficulties because the failure of SVP US might trigger a wave of withdrawals across the UK. The acquisition “strengthens our commercial banking brand and boosts our capacity to service innovative and fast-growing enterprises, notably in the technology and life-science sectors, in the U.K. and abroad,” according to HSBC Group CEO Noel Quinn, according to CNBC. CNBC also reported, “British Finance Minister Jeremy Hunt stressed that the deal “ensures customer deposits are protected and can bank as normal, with no taxpayer support.”

“The U.K.’s tech sector is genuinely world-leading and of huge importance to the British economy, supporting hundreds of thousands of jobs,” he added.

According to the Monday announcement from HSBC, SVB U.K. had loans of around £5.5 billion, deposits of approximately £6.7 billion, and a full-year profit before tax of £88 million in 2022. The bank estimates that SVB U.K.’s tangible equity will be around £1.4 billion.

The resolution of SVBUK’s U.S. parent bank and these actions have not directly or substantially impacted any other U.K. banks, according to the Bank of England, which also stated that the overall British banking sector is still “safe, sound, and well capitalized.”

The catastrophe that felled Silicon Valley Bank has led to new worries about banking contagion, and millionaire economist William Ackman is pleading with President Biden to “guarantee all deposits now” or else the American economy could collapse.

What’s next for Silicon Valley Bank USA? Elon Musk claims that after Silicon Valley Bank’s collapse, he is “open” to buying it.

In order to inform investors that they were aware of the issue and that they had no deposits with the bank, more than a dozen public companies  filed form 8-Ks with the SEC.

Juniper Networks Inc., The manufacturer of networking equipment claimed that although it “maintains operating accounts” with Silicon Valley Bank, these accounts account for less than 1% of its overall cash, cash equivalents, and investment holdings.

Roku said in a statement with the SEC, Roku stated that SVB held $487 million, or nearly 26%, of its total cash and cash equivalents as of March 10. The amount of those deposits that Roku will be able to collect is uncertain, according to Roku. Additionally, according to the report, it has an additional $1.4 billion in cash and cash equivalents that are “spread across numerous big financial institutions.”

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