Silicon Valley Bank in the UK is handing out $18 million in bonuses after bailing out HSBC
The UK subsidiary of Silicon Valley bank made more than $18m in bonuses this week – just days after HSBC stepped in as part of a bailout deal to save the institution from bankruptcy.
Payments to staff, including senior executives, were given the green light earlier this week by HSBC, the new owner of SVB UK, Sky News mentioned. HSBC Sold The British arm of the American Bank for one pound sterling in a deal facilitated by the Bank of England after the collapse of the parent company in Social media has fueled the run of the banks.
The rewards have been described as “modest” at between $18m and $24m, sources told Sky News.
Insiders said that had SVB UK not been solvent at the time of the takeover, the bonuses would not have been paid.
SVB employees are also in the US Rose received annual bonuses, just hours before the bank collapsed on March 10th.
Federal regulators Closed last week SVB, formerly the 16th largest bank in the United States, Santa Clara, California-based institution, after the financial institution suffered a major run. The crash came shortly after SVB revealed it had lost $1.8 billion in sales of its bonds, which sparked fears among clients that they would not be able to withdraw their money.
SBV Financial Group, the parent company of the failed Silicon Valley Bank, Filed for Chapter 11 bankruptcy protection Friday.