British Arm of SVB bankers receive bonuses totaling up to £20m
Bankers at the UK branch of bankrupt Silicon Valley Bank have reportedly received bonuses totaling tens of millions of pounds just days after the Bank of England stepped in to help orchestrate a bailout that saw its assets bought back by HSCB for £1.
According to a Sky News report, ‘modest’ employee bonuses totaling between £15m and £20m have been paid to staff and executives, although it’s not yet clear exactly how much CEO Erin Platts and d other executives were able to receive.
The broadcaster, citing an inside source, claimed the bankers’ bonuses demonstrated the faith HSBC had in the UK branch of bankrupt Silicon Valley Bank, as Europe’s biggest bank should have approved the payments after taking over SVB UK on Monday.
It follows reports that bonuses were also handed out to US staff at the bankrupt bank just hours before it became the biggest bank to collapse since the 2008 global financial crisis.
SVB UK, which employed around 700 people and was a profitable business, was in danger of collapsing after its US parent company went bankrupt.
To avoid harming Britain’s tech sector, Prime Minister Rishi Sunak staged an emergency auction for the bank, which eventually saw it bought by HSBC for £1 after being assured it would be exempt “closure” rules that were put in place after the 2008 crisis, forcing the country’s largest lenders to separate functions such as banking services from other activities such as investments and international banking.
The cantonment waiver was granted after the government was warned by SVB UK that if it collapsed it would ‘cripple the [tech]]and set the ecosystem back 20 years” and that “many companies will be put into involuntary liquidation overnight”.
They went on to say that if they were not bailed out or sold to another bank it would pose “an existential threat to the UK tech sector”, adding: “The Bank of England’s assessment that SVB would enter in administration would have a limited impact on the UK economy shows a dangerous lack of understanding of the sector and the role it plays in the wider economy, now and in the future.
SVB International Fallout: UK and European lenders lose £30bn overnight as ‘panic’ spreads https://t.co/tnPGchWj71
— Breitbart London (@BreitbartLondres) March 11, 2023
Commenting on the decision to sell SVB UK to HSBC, Chancellor Jeremy Hunt, the government’s controversial finance minister, said: “The UK tech sector is truly world-leading and vitally important to the UK economy, supporting hundreds of thousands of jobs. ”
“We have worked urgently to deliver on this promise and find a solution that will give confidence to SVB UK customers… [This] ensures that customer deposits are protected and can bank as normal without taxpayer support. »
While Republican lawmakers and conservatives in the United States have pointed to the Biden administration’s disastrous economic policies and resulting “bidenflation” economic crisis for triggering the SVB’s failure, others have also highlighted the California bank’s propensity to engage in left-wing environmental, social and governance (ESG) policies in its operations, meaning that instead of prioritizing economic viability, the leaders of the bank have sought to emphasize priorities such as diversity, inclusion and equity (DIE).
This was demonstrated by the fact that Silicon Valley Bank (SVB) reportedly donated more than $70 million to left-leaning causes such as the Marxist Black Lives Matter campaign, which has been accused of using donations to support the lavish lifestyle of its founders.
Credit Suisse: Populist People’s Party refuses to back state guarantee for $53 billion bailouthttps://t.co/0os49hHwPR
— Breitbart London (@BreitbartLondres) March 17, 2023
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