The United Kingdom arm of the Silicon Valley Bank (SVB UK) has awarded its employees bonuses. This latest information from an unnamed source is coming off the back of the company’s save from the clutches of bankruptcy by HSBC. According to the details, the latter had to pay only 1 pound to acquire the former on March 13.
SVB UK employees earned $25 million in bonuses
The news that was reported by Sky News on March 18 said the source mentioned that HSBC UK signed off on the bonuses, which were paid to staff and executives. Although the source did not clarify how much the CEO of SVB UK took home, it claimed the entire cache was not something bogus. According to the information, the total amount that was awarded in bonuses was a region close to $25 million.
Sources inside the bank mentioned that if SVB UK had not been acquired this way, the employees wouldn’t have gotten their bonuses this week. Another insider also mentioned that most of the stocks held by employees were already worth a lot less than they bought them judging by the bankruptcy issue that rocked the bank. The insider claimed that the prompt payment of the bonus was a show by HSBC to appreciate the hard-working staff of SVB UK. This move also means that HSBC is looking into the likelihood of retaining staff at SVB.
SVB US files for bankruptcy
SVB UK released a statement on Twitter announcing its delight at joining the growing HSBC UK family. The bank had previously spent 14 years since it started offering services across the UK. This merger came off the back of a statement by the Bank of England where it announced the closure of SVB UK due to certain issues. In the statement, the BoE mentioned that the bank lacked the needed reach and had no real support for the country’s financial system. The BoE said the bank would enter into the insolvency process as all deposits and withdrawals would be paused.
Meanwhile, the SVB US branch is still in hot waters after it entered into bankruptcy on March 17. The bank is presently looking out for buyers to purchase its assets. An executive mentioned that the bankruptcy filing would help the group hold on to value as it continues to look for alternatives regarding its assets. In addition, he also said that some of their companies that work independently would continue operations as they were not affected.
