Thoughts ?
Hasbulla Scandal Business Corporation there we go
Nothing, banks are regulated in countries they operate. SVP had a banking licence in the UK and had to work in the way their money is protected.
They bought them... For 1 £
HSBC has been teetering for a while. This is a move so they can benefit from UK government bailouts that will inevitably come as we can’t allow failing companies to go under in a competitive market anymore 🙄 If you’re a UK taxpayer you should be appalled at all of this.
Meanwhile Sunak making it sound like the best thing ever
SVB UK only had £6.7 billion in deposits and £8.8b in UK based assets. Relatively small compared to SVB $175billion deposits/ $210billion assets in the US. Risk for HSBC was significantly smaller to assume deposits and has a negligible impact on their overall liquidity.
HSBC is not exposed to the same credit risk? Is this not going to start the UK bank run?
Not in this case because Bank of England is involved to defray the risk if needed https://www.bankofengland.co.uk/news/2023/march/statement-on-silicon-valley-bank
They bought SVB UK entity
What do this mean for Americans?
Americans stuck in their own small little world