Employees of Silicon Valley Bank’s U.K. arm allegedly rewarded with a substantial sum of over £15 million in bonuses, days after being rescued by HSBC

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18th March 2023 – (New York) Silicon Valley Bank’s U.K. division has reportedly doled out a hefty sum of over £15 million (US$18 million) in bonuses to its staff, just days after being rescued by HSBC in a recent deal. According to Sky News, senior executives and other employees were the beneficiaries of this bonus pool, which was approved by HSBC earlier this week. It is worth noting that these bonuses would not have been granted had SVB UK not been acquired while still solvent.

Sources with knowledge of the matter told Sky News that the bonuses were deemed “modest” and ranged from £15 million to £20 million. Despite repeated requests for comment from Reuters, both SVB UK and HSBC have yet to respond.

Meanwhile, in the United States, SVB Financial Group, the parent company of Silicon Valley Bank, announced on Friday that it has filed for Chapter 11 bankruptcy proceedings to facilitate a court-supervised reorganization aimed at selling its assets. This announcement comes just days after the former unit of Silicon Valley Bank was taken over by US regulators.

As the dust settles on these developments, industry observers will be closely monitoring the fallout from this rescue deal and the implications it may have for both Silicon Valley Bank and the wider banking sector.