Silicon Valley Bank UK division gives $18 million in bonuses

Business

Factor: Matthew Sedacca

March 18, 2023 | 13:01

Silicon Valley Bank’s British subsidiary handed out more than $18 million in bonuses this week — just days after HSBC swooped in as part of a rescue deal to save the institution from insolvency.

HSBC, the new owner of SVB UK, gave the green light earlier this week for staff payments, which included executives, Sky News reported. HSBC bought the British arm of the American bank for £1 in a deal arranged by the Bank of England after its parent company collapsed in a bank run fueled by social media.

The bonus pool was described as “modest” and ranged from $18 million to $24 million, sources told Sky News.

Insiders said that if SVB UK had not been solvent at the time of acquisition, the bonuses would not have been paid.

SVB employees in the US also reportedly received annual bonuses just hours before the bank collapsed on March 10.

Federal regulators last week shut down SVB, formerly the 16th largest U.S. bank in Santa Clara, Calif., after the financial institution ran aground. The merger came shortly after SVB revealed a $1.8 billion loss on the sale of its bonds, scaring clients into fearing they wouldn’t be able to withdraw their funds.

SBV Financial Group, the parent company of the failed Silicon Valley Bank, filed for Chapter 11 bankruptcy protection on Friday.