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They acquired a bunch of client assets for 1 GBP. Those client assets will generate money for them in the long term. For HSBC this is a great deal. For the clie
by short_sells_poo 4y ago
They acquired a bunch of client assets for 1 GBP. Those client assets will generate money for them in the long term. For HSBC this is a great deal. For the clients too, come to think of it. On Friday the future of their money was uncertain, whereas today they can relax a bit because a big bank is backing them.
- deleted 4y ago[deleted]
- Teandw 4y agoThey didn't acquire client assets for £1. That's not quite how it works.
- noobermin 4y agoAssuming of course clients don't fucking pull out the moment they can when svb uk reopens.
- naijaboiler 4y agoUm "client assets" are liabilities to a bank
- deleted 4y ago[deleted]
- actionablefiber 4y agoIf you had deposits with SVB's UK arm before, congrats, you're now an HSBC customer. There is a much lower chance HSBC experiences a bank run. Not to jinx it but the most likely outcome is that most customers are satisfied that HSBC is a well-capitalized bank and keep their money there, while HSBC gets to use their deposits and the bank's assets to sit comfy earning yield.
- deleted 4y ago[deleted]