- HSBC's purchase of SVB UK is a different deal for a different time, unlikely to backfire spectacularly.
- HSBC hopes to make a net gain from the takeover.
- SVB UK operated under its own local banking licence and invested primarily in short-term, liquid assets.
- HSBC chief executive Noel Quinn should bank some political capital as well as the financial kind.
- The transaction cannot immunise markets in the UK or elsewhere from contagion that might originate in the US.
HSBC/SVB UK: Quinn wins political and financial capital
HSBC's purchase of Silicon Valley Bank's UK subsidiary is unlikely to backfire spectacularly, but cannot immunise markets from US contagion.