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<ul><li><keyword id="6358584" type="General" weightage="20" keywordseo="hsbc" source="Orion">HSBC</keyword> says that the transaction 'completes immediately' and will be funded from existing resources.</li><li>The UK central bank said the deal will ensure the continuity of banking services, minimise disruption to the UK technology sector. </li></ul> HSBC UK Bank plc is acquiring Silicon Valley Bank UK Limited (SVB UK) for 1 pound, after a weekend of frantic negotiations by UK officials. In a statement, HSBC says the transaction "completes immediately". The acquisition will be funded from existing resources, the Guardian reported. "As at 10 March 2023, SVB UK had loans of around 5.5 billion pounds and deposits of around 6.7 billion pounds. For the financial year ending December 31, 2022, SVB UK recorded a profit before tax of 88 million pounds. SVB UK's tangible equity is expected to be around 1.4 billion pounds. Final calculation of the gain arising from the acquisition will be provided in due course," HSBC said. The sale to HSBC has been taken to "stabilise SVBUK", says the Bank of England. The UK central bank says the deal will ensure the continuity of banking services, minimise disruption to the UK technology sector and support confidence in the financial system, the Guardian reported. Importantly, the Bank of England and HM Treasury can confirm that all depositors' money with SVBUK is safe and secure as a result of this transaction. That will be a massive relief for tech companies, who feared an �existential threat' to their businesses if they had lost their funds at SVB UK, the Guardian reported. The BoE add that the deal with HSBC means SVB UK will not now be put into insolvency. It says, "SVBUK's business will continue to be operated normally by SVBUK. All services will continue to operate as normal and customers should not notice any changes".

HSBC acquires UK arm of Silicon Valley Bank for £1

Washington, US President Joe Biden has assured the American people and businesses that a resolution of the collapse of the <keyword id="630197" type="General" weightage="80" keywordseo="silicon-valley-bank" source="Orion">Silicon Valley Bank</keyword> will not put taxpayer's money at risk, and they can have confidence that their bank deposits would be there when they need it. In a late-night statement on Sunday, Biden also announced that on Monday morning he will deliver remarks on how the US will maintain a resilient banking system to protect the economic recovery. The California-based Silicon Valley Bank (SVB), the 16th largest bank in the United States, was closed on Friday by the California Department of Financial Protection and Innovation which later appointed the Federal Deposit Insurance Corporation (FDIC) as its receiver. Industry watchers expect a quick takeover of the bank as it has enough assets that can be liquidated to return money to the clients. Biden said that at his direction the Treasury Secretary and National Economic Council Director worked diligently with the banking regulators to address problems at SVB and Signature Bank. "I am pleased that they reached a prompt solution that protects American workers and small businesses, and keeps our financial system safe. The solution also ensures that taxpayer dollars are not put at risk. The American people and American businesses can have confidence that their bank deposits will be there when they need them," Biden said. "I am firmly committed to holding those responsible for this mess fully accountable and to continuing our efforts to strengthen oversight and regulation of larger banks so that we are not in this position again," he added. Hours earlier, Treasury Secretary Janet Yellen approved actions enabling the FDIC to complete its resolution of Silicon Valley Bank, Santa Clara, California, in a manner that fully protects all depositors. "Depositors will have access to all of their money starting Monday, March 13. No losses associated with the resolution of SVB will be borne by the taxpayer," said a joint statement issued by the Department of the Treasury, Federal Reserve, and FDIC. "We are also announcing a similar systemic risk exception for Signature Bank, New York, New York, which was closed today by its state chartering authority. All depositors of this institution will be made whole. As with the resolution of SVB, no losses will be borne by the taxpayer," it said. According to the interagency federal statement, shareholders and certain unsecured debt holders will not be protected. "Senior management has also been removed. Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law," it said. The Federal Reserve Board on Sunday announced it would make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors. This step will ensure that the US banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth, the statement further said. Senator Mark Warner, a member of the Senate Banking Committee, said after an unprecedented and reckless run on Silicon Valley Bank, there were very real risks of instability spreading to other institutions and undermining our national security and technology innovation ecosystem. "The Federal Reserve, the FDIC, and the Treasury Department have together acted as Congress intended when we wrote Dodd-Frank by acting swiftly and responsibly to protect depositors and make sure that our financial system remains stable, while at the same time making clear that bank shareholders and bondholders shouldn't expect any kind of bailout by the taxpayers. Their quick action will help companies make payroll and preserve jobs all across the country," he said. California Governor Gavin Newsom said that the Biden Administration has acted swiftly and decisively to protect the American economy and strengthen public confidence in our banking system. "Their actions this weekend have calmed nerves, and had profoundly positive impacts on California - on our small businesses that can now make payroll, workers who will get their paychecks, on affordable housing projects that can continue construction, and on non-profits that can keep their doors open tomorrow," he said. "California is a pillar of the American economy, and federal leaders did the right thing, ensuring our innovation economy can continue to grow and move forward," Newsom said. Silicon Valley Bank was deeply entrenched in the tech startup scene and the default bank for many high-flying startups; its abrupt fall marks one of the largest bank failures since the 2008 global financial crisis. The bank failed after clients -- many of them venture capital firms and VC-backed companies that the bank had cultivated over time -- began pulling out their deposits, creating a run on the bank (among the biggest US bank runs in more than a decade). Bank runs occur when customers or investors gripped by panic start withdrawing their money, causing the bank to be incapable of paying its obligations as they come due. Silicon Valley Bank's abrupt collapse last week has left Silicon Valley entrepreneurs unnerved and jittery. Federal Deposit Insurance Corporation on Friday seized the assets of Silicon Valley Bank -- the action reportedly in the middle of the business day highlighted the severity of the situation.

SVB solution ensures taxpayer dollars are not put at risk: President Biden

<ul><li>The 17 former branches of <keyword id="16953072" type="General" weightage="20" keywordseo="silicon-valley-bridge-bank" source="Orion">Silicon Valley Bridge Bank</keyword>, <keyword id="220723" type="General" weightage="20" keywordseo="national-association" source="Orion">National Association</keyword>, will open as FirstCitizens Bank &amp; Trust Company on Monday, March 27, 2023, FDIC said.</li><li>Customers of Silicon Valley Bridge Bank, National Association, should continue to use their current branch until they receive notice from <keyword id="16953457" type="General" weightage="20" keywordseo="first-citizens-bank" source="Orion">First Citizens Bank</keyword> &amp; Trust Company, the regulator said. </li></ul> San Francisco, March 27 (IANS) The US Federal Deposit Insurance Corporation (FDIC) has announced that First Citizens Bank and Trust Company of Raleigh, North Carolina entered a purchase agreement for all deposits and loans of Silicon Valley Bridge Bank, National Association. "The 17 former branches of Silicon Valley Bridge Bank, National Association, will open as FirstCitizens Bank &amp; Trust Company on Monday, March 27, 2023," Fox Business quoted the FDIC as saying in a statement. "Customers of Silicon Valley Bridge Bank, National Association, should continue to use their current branch until they receive notice from First Citizens Bank &amp; Trust Company that systems conversions have been completed to allow full service banking at all of its other branch locations," the statement continued. Depositors of the Santa Clara, California-located bank will automatically become depositors of First�Citizens Bank &amp; Trust Company, according to the statement, and all deposits will be assumed and insured by First�Citizens Bank &amp; Trust Company, up to the insurance limit, Fox Business reported. The FDIC said: "As of March 10, 2023, Silicon Valley Bridge Bank, National Association, had approximately $167 billion in total assets and about $119 billion in total deposits. Today's transaction included the purchase of about $72 billion of Silicon Valley Bridge Bank, National Association's assets at a discount of $16.5 billion." In addition, approximately $90 billion in securities and other assets will remain in the receivership for disposition by the FDIC, Fox Business reported.

First Citizens Bank reaches deal to purchase deposits, loans of Silicon Valley Bank

<ul class="summary-list"><li>Big banks are sitting on $650 billion of unrealized losses, Moody's has estimated.</li><li>It's a sign even Wall Street's best-known names are feeling the heat from the Treasury-market rout.</li></ul>Crashing bond prices <a href="https://markets.businessinsider.com/news/stocks/svb-silicon-valley-bank-collapse-jpmorgan-morgan-stanley-bank-stocks-2023-3">sank Silicon Valley Bank</a> in March — and there's reason to believe that what triggered the California lender's collapse may be haunting Wall Street again.The brutal <a href="https://markets.businessinsider.com/news/bonds/bond-market-crash-what-are-treasury-yields-stocks-economy-americans-2023-10">Treasury-market meltdown</a> has hit some of the largest financial institutions hard, dragging down the share prices of big names such as <a href="https://markets.businessinsider.com/stocks/bac-stock">Bank of America</a> and fueling fears that the turmoil triggered by SVB's bankruptcy may not be over just yet.Here's everything you need to know about unrealized losses, including why they're dragging on bank stocks and whether they could trigger another financial crisis.<h2>Unrealized losses</h2>Treasury bonds — debt instruments the government issues to fund its spending — have been on a nightmarish run since the onset of the pandemic, with investors fretting about <a href="https://markets.businessinsider.com/news/stocks/stock-market-charts-crash-federal-reserve-interest-rates-bonds-crypto-2023-6">rising interest rates</a> and the long-term viability of <a href="https://markets.businessinsider.com/news/bonds/bond-market-crash-government-debt-ceiling-crisis-wall-street-deficit-2023-10">the US's massive deficit</a>.BlackRock's <a href="https://www.marketwatch.com/investing/fund/tlt" target="_blank" rel="noopener">iShares 20+ Year Treasury fund</a>, which tracks longer-duration debt prices, has plunged 48% since April 2020. Meanwhile, <a href="https://markets.businessinsider.com/rates/u-s--rates-10-years">10-year Treasury yields</a>, which move in the opposite direction to prices, recently <a href="https://markets.businessinsider.com/news/bonds/bond-market-crash-us-treasury-yields-federal-reserve-debt-crisis-2023-10">spiked above 5%</a> for the first time in 16 years.As a result of that sell-off, some of the US's biggest banks are now sitting on unrealized, or "paper," losses worth hundreds of billions of dollars. That means the value of their bond holdings has plunged, but they've chosen to hold on rather than offload their investments.<a href="https://www.reuters.com/business/finance/bank-americas-unrealized-losses-securities-rose-1316-bln-2023-10-17/" target="_blank" rel="noopener">Moody's</a> estimated last month that US financial institutions had racked up $650 billion worth of paper losses on their portfolios by September 30 — up 15% from June 30. The ratings agency's data still doesn't account for a hellish October where the longer-term collapse in bond prices spiraled into one of the <a href="https://markets.businessinsider.com/news/bonds/treasury-bond-yields-market-selloff-market-crashes-dot-com-bubble-2023-10">worst routs in market history</a>.These "losses" are not the same as debt, however, which describes actual borrowings that need to be repaid. <a href="https://markets.businessinsider.com/stocks/bac-stock">Bank of America</a> is the big lender worst affected by the crash in bond prices, having disclosed a potential $130 billion hole in its balance sheet last month.The other "Big Four" banks — <a href="https://markets.businessinsider.com/stocks/c-stock">Citigroup</a>, <a href="https://markets.businessinsider.com/stocks/jpm-stock">JPMorgan Chase</a>, and <a href="https://markets.businessinsider.com/news/wfc-stock">Wells Fargo</a> — have also racked up unrealized losses in the tens of billions, according to their second- and third-quarter earnings reports.<h2>Another SVB-style crisis?</h2>Silicon Valley Bank failed in March after disclosing a $1.8 billion loss on its own bond portfolio, triggering a run on deposits. Similarly, big banks' huge unrealized losses are also sparking concern among Wall Street doom-mongers."'Higher for longer' is absurd baloney," the market vet <a href="https://twitter.com/Convertbond" target="_blank" rel="noopener">Larry McDonald said in a post on X</a> Sunday, referring to the Fed signaling it would hold interest rates at about their current level well into 2024 in a bid to kill off inflation. "A 6% + Fed funds and Bank of America is near insolvency."It's important to remember that BofA's $130 billion losses are still unrealized. Unlike SVB, it isn't officially in the red yet because it has not sold its bond holdings.The bank's chief financial officer, Alastair Borthwick, shrugged off the market's worries on last month's earnings call, pointing out that most of the bank's fixed-income portfolio was low-risk government bonds it planned to hold until the debt expires."All of these are unrealized losses are on government-guaranteed securities," he told reporters. "Because we're holding them to maturity, we will anticipate that we'll have zero losses over time."There's still a possibility that spooked BofA customers will pull their money en masse, as they did with SVB — but that hasn't happened. In fact, deposits are up after registering about 200,000 new accounts in the third quarter.Some analysts also believe the worst of the Treasury-market rout is now over, with the Federal Reserve starting to signal that its tightening campaign is nearly done. Ten-year yields have softened in recent weeks, falling from 5% to 4.6% as of Tuesday.<h2>Banks under pressure</h2>That doesn't mean the Big Four banks can afford to just dismiss the bond rout.In a paper published earlier this year, researchers for the <a href="https://www.kansascityfed.org/Economic%20Review/documents/9473/EconomicReviewV108N2MarshLaliberte.pdf" target="_blank" rel="noopener">Kansas City Fed</a> concluded that paper losses could still drag down a bank's share price: "Unrealized losses can increase equity costs as investors' perceptions of financial health deteriorate."That's been happening this year, with three of the big four banks' stocks sliding. Predictably, Bank of America has been worst affected, with its stock down 24% over the past year and 14% year-to-date."Worries over unrealized losses on sovereign bond holdings are also weighing on the US lenders, to again reflect concerns over rising interest rates and whether the US Federal Reserve will ultimately tighten policy by too much for too long," AJ Bell's Russ Mould said in a note last week.Unrealized losses may not be about to trigger another financial crisis — but as long as bank stocks are down, they'll remain a concern for Wall Street's biggest names.

Bond-market crash leaves big banks with $650 billion of unrealized losses as the ghost of SVB continues to haunt Wall Street

US-based technology startup accelerator <keyword id="610465" type="General" weightage="100" keywordseo="y-combinator" source="Orion">Y Combinator</keyword> is laying off 17 employees -- or 20 per cent of its staff -- as it announced to scale back late-stage funding. The layoffs came as Y Combinator, which has invested in thousands of startups including at least 200 from India, wrote a petition to US Treasury Secretary <keyword id="116249" type="General" weightage="50" keywordseo="janet-yellen" source="Orion">Janet Yellen</keyword> and others in the wake of the <keyword id="630197" type="General" weightage="50" keywordseo="silicon-valley-bank" source="Orion">Silicon Valley Bank</keyword> (<keyword id="675965" type="General" weightage="80" keywordseo="svb" source="Orion">SVB</keyword>) collapse, asking them to prevent shockwaves that could lead to financial crisis and layoffs of more than 100,000 workers. The company, however, said the layoffs were planned before the SVB collapse. Y Combinator CEO <keyword id="4836111" type="General" weightage="50" keywordseo="garry-tan" source="Orion">Garry Tan</keyword> said in a statement that YC is rightly known for early stage investing. "In recent years, we have also done some late-stage investing. But late-stage investing turned out to be so different from early-stage investing that we found it to be a distraction from our core mission. So we're going to decrease the amount of late stage investing we do," he mentioned. As a result, "we will no longer need some of the roles on the late stage investing team. Seventeen of our teammates are impacted today," <keyword id="52681" type="General" weightage="80" keywordseo="tan" source="Orion">Tan</keyword> wrote. The YC CEO said this shouldn't have any noticeable effect on the companies it has funded. "YC is known primarily as a place where very early founders create something from nothing by simply applying online and joining the world's best founder community," said Tan. Over 1,200 CEOs and founders representing over 56,000 employees had signed the YC petition to save startups and hundreds of thousands of jobs. In the Y Combinator community, one-third of startups with exposure to SVB used SVB as their sole bank account. SEE ALSO: <a href="https://www.businessinsider.in/business/news/pristyn-care-has-reportedly-fired-300-employees/articleshow/98514449.cms">Health-tech startup Pristyn Care has reportedly fired 300 employees in the last two months</a> <a href="https://www.businessinsider.in/science/health/news/you-are-not-safe-from-air-pollution-anywhere-in-the-world-finds-a-new-study/articleshow/98471370.cms">You are not safe from air pollution anywhere in the world, finds a new study</a>

Y Combinator lays off 20% staff, scales back on late-stage investments

As the collapse of <keyword id="630197" type="General" weightage="50" keywordseo="silicon-valley-bank" source="Orion">Silicon Valley Bank</keyword> (<keyword id="675965" type="General" weightage="100" keywordseo="svb" source="Orion">SVB</keyword>) in the US left the Indian startup ecosystem worried, Union Minister of State for Electronics and IT, <keyword id="205969" type="General" weightage="50" keywordseo="rajeev-chandrasekhar" source="Orion">Rajeev Chandrasekhar</keyword>, on Sunday said he will hold a meeting with the startup Founders and CEOs next week to see how the government can help them during the crisis. The bank's collapse is going to impact several startups in India which have exposure to its investments and have parked their funds in the bank. "The @SVB_Financial closure is certainly disrupting startups across the world. Startups are an important part of #NewIndia Economy," Chandrasekhar said in a tweet. The minister said he will meet with the Indian startups next week "to understand the impact on them and how the Narendra Modi government can help them "during this crisis." According to recent data by global software-as-a-service (SaaS)-based market intelligence platform Tracxn, SVB had exposure in at least 21 startups in India although it did not reveal the size of the investment in these startups. Top venture capitalist (VC) firms have also issued a joint statement on the collapse of SVB, one of the largest US banks serving the global startup community, saying they are "deeply disappointing and concerning". According to reports, SVB was a bank to more than 2,500 venture capital firms, including Lightspeed, <keyword id="6581358" type="General" weightage="50" keywordseo="bain-capital" source="Orion">Bain Capital</keyword> and Insight Partners. On Friday, the <keyword id="905063" type="General" weightage="50" keywordseo="us-federal-deposit-insurance-corporation" source="Orion">US Federal Deposit Insurance Corporation</keyword> (FDIC) took control of the SVB's $175 billion in customer deposits. US-based technology startup accelerator Y Combinator, which has invested in thousands of startups, including at least 200 from India, has written a petition to US Treasury Secretary Janet Yellen and others, asking them to prevent further shockwaves that could lead to financial crisis and layoffs of more than 100,000 workers. Over 1,200 CEOs and founders representing over 56,000 employees have already signed the petition, written by Garry Tan, CEO and President of Y Combinator, to save startups and hundreds of thousands of jobs. SEE ALSO: <a href="https://www.businessinsider.in/international/news/us-bank-svb-taken-over-is-largest-failure-since-2008/articleshow/98560513.cms">US bank SVB taken over is largest failure since 2008</a> <a href="https://www.businessinsider.in/careers/news/meta-to-begin-laying-off-another-11k-employees-in-multiple-waves-next-week/articleshow/98558203.cms">Meta to begin laying off another 11K employees in multiple waves next week</a> <a href="https://www.businessinsider.in/entertainment/news/not-just-game-of-thrones-144-hbo-originals-are-exiting-disney-hotstar/slidelist/98541137.cms">HBO Originals White Lotus, Big Little Lies &amp; more that’ll vanish from Disney+ Hotstar</a>

SVB collapse: Minister Chandrasekhar to meet Indian startups to see how govt can help them

<ul class="summary-list"><li>Silicon Valley Bank's collapse is Wall Street's gain as customers flee smaller lenders, per the FT.</li><li>Deposits are pouring into JPMorgan, Citi and Bank of America thanks to fears about smaller banks' stability.</li></ul>Silicon Valley Bank's collapse is <a href="https://www.businessinsider.com/jpmorgan-big-banks-benefit-from-silicon-valley-bank-collapse-2023-3">Wall Street's gain</a> as worries about stability spur customers of smaller US lenders to move their money out.JPMorgan Chase, Citigroup and Bank of America are among the big Wall Street banks that have seen a flood of requests to transfer in deposits, the <a href="https://www.ft.com/content/2b580939-a4b6-48d2-8eb6-629b4cb1e06c" target="_blank" rel="noopener">Financial Times</a> reported Tuesday, citing people close to the matter said.Bank executives have called it the biggest movement of deposits in more than a decade, the report said. The rush has forced some large lenders to expedite the normal onboarding process for clients.The flight to big banks comes despite the US government taking emergency measures to stop the spread of potential bank runs <a href="https://markets.businessinsider.com/news/stocks/silicon-valley-bank-failure-collapse-interest-rate-hikes-financial-risks-2023-3?utm_medium=ingest&amp;utm_source=markets" rel="">following Silicon Valley Bank</a>'s failure. "The calls have been coming in today like airplanes stacked on a snowy day at O'Hare airport," one senior banker told the FT about the number of new depositors moving out of regional lenders.SVB's collapse marked the biggest bank failure since the 2008 financial crisis, and the Federal Deposit Insurance Corp. took control of the lender on Friday.The turmoil sparked fears that similar companies could go down under similar pressure, prompting investors to shun financial-sector stocks. Meanwhile, customers of smaller lenders started to look to the safety of "too big to fail banks."Over $200 billion in cash deposits if up for grabs from customers of SVB and Signature Bank, which also failed and was seized by the FDIC. The startup founders that were the bedrock of those banks' customers <a href="https://www.businessinsider.com/jpmorgan-big-banks-benefit-from-silicon-valley-bank-collapse-2023-3">are also turning to big banks</a>.JPMorgan is accelerating how soon new corporate customers can access funds, per the FT. Meanwhile, Citi's private bank is trying to open accounts within one day of application, rather than the typical week or two.On Tuesday, nerves about the prospects for smaller lenders appeared to have settled somewhat. Shares in <a href="https://markets.businessinsider.com/news/stocks/first-republic-bank-stock-price-falls-fears-svb-turmoil-spread-2023-3?amp">First Republic</a>, <a href="https://markets.businessinsider.com/news/stocks/western-alliance-stock-silicon-valley-bank-failure-fears-contagion-liquidity-2023-3">Western Alliance</a> and <a href="https://markets.businessinsider.com/stocks/pacw-stock?utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets" rel="">PacWest Bancorp</a> were staging a <a href="https://markets.businessinsider.com/news/stocks/first-republic-stock-price-western-alliance-svb-silicon-valley-bank-2023-3">comeback from huge losses</a> notched in the prior session.

You Searched For "svb bank" and got 7 results

HSBC acquires UK arm of Silicon Valley Bank for £1

IANS

SVB solution ensures taxpayer dollars are not put at risk: President Biden

PTI

First Citizens Bank reaches deal to purchase deposits, loans of Silicon Valley Bank

IANS

Bond-market crash leaves big banks with $650 billion of unrealized losses as the ghost of SVB continues to haunt Wall Street

George Glover

Y Combinator lays off 20% staff, scales back on late-stage investments

IANS

SVB collapse: Minister Chandrasekhar to meet Indian startups to see how govt can help them

IANS

SVB's collapse sends small-bank customers running for shelter in big Wall Street banks

Zahra Tayeb

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