Millions paid in bonuses to UK Silicon Valley Bank staff days after £1 rescue
The UK arm of the collapsed Silicon Valley Bank is reported to have paid millions of pounds in bonuses days after it was sold in a rescue deal for £1.
Staff at Silicon Valley Bank UK (SVB UK) are said to have been given payouts from what has been described as a “modest” bonus pool of between £15m and £20m. The Californian-based bank collapsed eight days ago, triggering concerns of a new global banking crisis.
Details of the payouts emerged as crisis-hit Credit Suisse bank was locked in talks this weekend with UBS over a potential takeover. Regulators around the world are now battling to retain public confidence in the international banking system.
The bonuses to SVB UK staff were approved by its new owner, HSBC, according to Sky News, which first reported the payouts. The bank said the bonuses had been agreed before the bank’s failure.
Ian Stuart, chief executive of HSBC UK, said: “We wanted this business and we wanted to retain the people who, in turn, support its customers. We have honoured these previously agreed payments to recognise their expertise and demonstrate our confidence in SVB UK.”
The bank said no government or taxpayer funds were involved in the sale of SVB UK which was facilitated by the Bank of England in consultation with HM Treasury. The subsidiary employs more than 600 staff.
Hundreds of billions of pounds were wiped off the value of global shares last week after the collapse of SVB. There were heightened fears of financial contagion when regulators closed the New York-based Signature Bank last Sunday after customers started withdrawing billions of dollars.
By Tuesday, Credit Suisse, Switzerland’s second largest bank, also appeared to be in peril as the bank disclosed its auditor had found “material
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