The Silicon Valley Bank's $1.8 billion loss triggered panic among its investors and depositors, triggering a stock market rout and run in on the bank for withdrawals. Although SVB was shut down, the episode left investors spooked as another lender collapsed and the crisis hasn't abated yet.
Amidst these headwinds, HSBC stepped in to rescue SVB in the UK and bought it for around Rs 100, and signed off on an $18 million bonus for its staff.
HSBC infuses stability
After acquiring SVB's British arm, HSBC also pledged more than $2 billion to pull the lender towards revival and protect its customers.
The bonuses couldn't have been paid if the acquisition hadn't been done when SVB was solvent.
The move also sets SVB UK apart from its US parent, which is seeking time to repay its creditors after restructuring under Chapter 11 bankruptcy.
How are US employees faring?
As employees in the UK are reportedly getting bonuses, the staff at SVB in the US has been offered 45 days of work at 1.5 times their salary, by the banking regulator.
At a time when work from office vs work from home has turned into a raging debate, some SVB employees even blamed remote work for the fiasco.
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