Bankers at the British branch of the failed Silicon Valley bank were reported to have received bonuses amounting to tens of millions of pounds just days after the Bank of England stepped in to help orchestrate a bailout whose assets were bought out by HSCB for £1.
according to a report From Sky News, “modest” staff bonuses totaling between £15m and £20m have been awarded to staff and executives, although it is currently unclear how much CEO Erin Platts and other executives may have received.
The broadcaster claimed, citing an inside source, that the bankers’ bonuses showed the confidence HSBC had in the British arm of failed Silicon Valley Bank, as Europe’s largest bank had to sign off on payments after it acquired SVB UK on Monday.
He follows reports Those bonuses were also handed out to the American employees of the failed bank just hours before it became the biggest bank to fail since the 2008 global financial crisis.
SVB UK, which employs about 700 people and was once a profitable company, faced the prospect of collapse after the collapse of its US parent company.
To prevent damage to the British tech sector, Prime Minister Rishi Sunak held an emergency auction of the bank, which eventually saw it bought out by HSBC for £1 after being assured it would be exempt from the ‘fencing’ rules that were put in place after the crisis. In 2008, it required the country’s largest lenders to keep functions such as banking services separate from other activities such as investments and international banking.
The duel waiver was granted after SVB UK warned the government that if it collapsed it would be “crippled”. [tech]]and set the ecosystem back 20 years “and that” many companies would be sent into involuntary liquidation overnight. “
They went on to say that if they are not given a bailout or sold to another bank, it will pose an “existential threat to the UK technology sector”, adding: “The Bank of England’s assessment that SVB’s entry into administration will have a limited impact on the UK economy shows a serious lack of technology.” Understanding the sector and the role it plays in the broader economy, today and in the future.”
International SVB fallout: UK and EU lenders lose £30bn overnight as ‘panic’ spreads https://t.co/tnPGchWj71
– BreitbartLondon March 11, 2023
Commenting on the move to sell SVB UK to HSBC, Chancellor Jeremy Hunt, the government’s controversial finance minister, said: “The UK technology sector is truly world-leading and of huge importance to the UK economy, supporting hundreds of thousands of jobs.”
“We have worked urgently to deliver on this promise and to find a solution that provides SVB UK clients with confidence… [This] It ensures customer deposits are protected and can deal with banks as normal, without subsidies from taxpayers.”
While US Republican and conservative lawmakers have pointed to the disastrous economic policies of the Biden administration and the economic crisis resulting from “Biden hypertrophy” to spark the failure of the SVB, others have also pointed to the California-based bank’s tendency to indulge in left-wing ecology, social policies, and governance (ESG) In its operations, which means that rather than prioritizing economic viability, awakened bank executives have sought to emphasize priorities such as Diversity, Inclusion, and Equity (DIE).
This was further demonstrated by the fact that Silicon Valley Bank (SVB) has donated more than $70 million to left-wing causes such as the Marxist Black Lives Matter campaign, which has been accused of using donations to support a lavish lifestyle. its founders.
Credit Suisse: Populist People’s Party refuses to support $53 billion state guarantee bailouthttps://t.co/0os49hHwPR
– BreitbartLondon March 17, 2023
Follow Kurt Zindulka on Twitter here @employee
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