Beautiful Virgin Islands

Thursday, Oct 17, 2024

HSBC to unveil shake-up of Silicon Valley Bank UK board

HSBC to unveil shake-up of Silicon Valley Bank UK board

Two of HSBC's top executives and one of the independent directors of its UK bank will join the board of Silicon Valley Bank UK, two months after buying it for £1.
HSBC is shaking up its new subsidiary, Silicon Valley Bank UK (SVBUK), by appointing a trio of senior figures as directors, two months after acquiring the US-owned lender in a £1 rescue deal.

Sky News has learnt that HSBC will announce on Tuesday that John Hinshaw, group chief operating officer; Stuart Tait, head of UK commercial banking; and Mridul Hegde, an independent director of HSBC's UK bank are joining the SVBUK board.

People close to the company said that Vin Murria, a technology entrepreneur, would be stepping down as an SVBUK director as part of the changes.

No imminent changes to SVBUK's executive leadership are planned, they added.

SVBUK's independent chairman Darren Pope is also expected to remain in place, at least for the time being.

The boardroom overhaul comes two months after HSBC swooped to buy the British arm of California-based Silicon Valley Bank in an emergency deal orchestrated by the Bank of England.

One insider said the new appointments represented a natural evolution under HSBC's ownership.

It also plans to rename SVBUK with a decision being announced as soon as London Tech Week next month.

In the US, SVB was taken into temporary public ownership after a run on the bank triggered by a crisis of confidence among depositors.

It was subsequently sold to First Citizens Bancshares, a regional US lender.

Sky News revealed in March that HSBC had signed off on the payment of just under £20m in bonuses to SVBUK staff.

One insider said at the time that the bonus payments were a signal of HSBC's confidence in the talent base at its new subsidiary and that it had been keen to honour previously agreed payments in order to help retain key staff.

Employing about 700 people in Britain, SVBUK is a profitable business but was brought to the brink of collapse by the travails of its American parent company.

An emergency auction in which Rishi Sunak, the prime minister, played a pivotal role had also drawn interest from challenger banks including OakNorth and The Bank of London.

Jeremy Hunt, the chancellor, said the rescue had been critical to preserving funding to some of the UK's most promising start-up companies.

"The UK's tech sector is genuinely world-leading and of huge importance to the British economy, supporting hundreds of thousands of jobs," he said.

The government had been lobbied intensively to intervene by hundreds of tech entrepreneurs about the parlous state of SVBUK.

They warned of "an existential threat to the UK tech sector", adding: "The Bank of England's assessment that SVB going into administration would have limited impact on the UK economy displays a dangerous lack of understanding of the sector and the role it plays in the wider economy, both today and in the future."

HSBC declined to comment.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
US Warns Israel of Potential Aid Cuts Over Gaza Assistance Delays
Meta Faces Legal Battle Over Teen Social Media Addiction
UK Government Proposes Weight-Loss Injections to Combat Obesity and Boost Employment
UK Gambling Firms Face Market Turmoil Amid Possible Tax Hike
Labour MP Criticizes UK's Dependence on Elon Musk's X
Tracey Emin Questions the Longevity of Male Artists' Creativity
Pay Growth Decline in Great Britain May Lead to Interest Rate Cuts
David Cameron Reveals Planned Sanctions on Israeli Ministers
UK Unveils Weight Loss Jabs for Unemployed to Boost Health and Economy
Incineration: UK's Dirtiest Power Source
Potential National Insurance Rise for Employers Under Consideration
Russia's Call for a BRICS Financial System Alternative
Indigenous Groups in Brazil Protest Carbon Credit Deal
Only A Third Of Europe's Surface Waters Are Healthy
Taiwan Records Unprecedented Chinese Military Activity Post-Drills
Israel Vows to Limit Retaliatory Strike on Iran to Military Facilities
Four Killed in Tesla Electric Car Fire in France
Man with Weapons Arrested Near Trump Rally in California
How Ego and Pettiness are Sinking the UK Economy
China Conducts Military Drills Around Taiwan: A Strategic Warning
Tech Boosts Singapore’s Economy to 4.1% Growth in Q3
US Deploys THAAD Missile Defense System to Israel
DNA Evidence Suggests Christopher Columbus Was a Sephardic Jew
Rise in Self-Diagnosed ADHD Among Adults
Noel Tata Appointed Chairman of Tata Trusts Following Ratan Tata's Passing
Keir Starmer Reflects on His First 100 Days as Prime Minister
UK Investigates Firms for Alleged Russian Oil Sanctions Breaches
Keir Starmer's First 100 Days: Achievements and Challenges
Exposing Mohamed Al Fayed: A Personal Battle
Tesla's Robotaxi Design Strikes Controversy
Tragedy Strikes MSC Virtuosa Near Channel Islands
Scottish DJ Jackmaster Dies After Head Injury in Ibiza
Alex Salmond: A Political Life of Contrasts and Influence
Former Scottish First Minister Alex Salmond Dies
North Korea Accuses South Korea of Drone Leaflet Campaign
Poll Shows Trump Favored Over Harris in Handling Wars
Boeing to Reduce Workforce by 10% Amid Financial Strain
Prospect of UK Rejoining the EU Discussed by Peter Mandelson
UK Businesses Halt Hiring Due to Budget Speculations
Council of Nations Aims to Revitalize UK Power-Sharing
Starmer Criticizes Minister's P&O Ferries Boycott Call
BBC Initiates Review to Counteract Workplace Power Abuses
Key Insights from Post Office Chief Nick Read's Horizon IT Inquiry Testimony
Kemi Badenoch and Robert Jenrick: Perspectives in Tory Leadership Race
Cocaine Smuggling Operation in Banana Shipment Foiled by UK Authorities
Police Investigate 40 New Allegations Against Mohamed Al Fayed
Government Navigates Dispute Over DP World's £1bn London Port Expansion
Historic Floods Reshape Sahara Desert Landscape
Noel Tata Appointed Chairman of Tata Trusts
Brazilian Man Arrested for Decades-long Abuse and Imprisonment of Family
×