Dutzende of Silicon Valley Bank bankers have been hired by the US division of HSBC Holdings plc, led by David Sabow, who most recently managed the technology and healthcare banking division for the California-based bank that went bankrupt last month.
In a statement, HSBC USA said that the hiring will help the bank set up a dedicated banking practice that will serve technology and healthcare companies and investors who support them. It was stated that as part of this initiative, HSBC has initially assembled a team consisting of more than forty bankers in the New York City, Boston, and San Francisco Bay Areas.
On March 10, 2023, depositors rushed to withdraw their funds in a bank run that also brought down Signature Bank and destroyed more than half the market value of several other U.S. regional lenders. As a result, the Federal Deposit Insurance Corporation (FDIC) took control of Silicon Valley Bank.
A deal for regional lender First Citizens BancShares to acquire failed Silicon Valley Bank was approved by U.S. regulators last month, resulting in an estimated $20 billion hit to a government-run insurance fund.
According to HSBC, Sunita Patel, who will be responsible for financial backer inclusion and business improvement for the innovation and medical care market, Katherine Andersen, who will be accountable for life sciences and medical services, and Melissa Stepanis, who will be accountable for innovation, were among different recruits.
It stated that the new banking practice of HSBC will be part of the bank’s US commercial banking division. HSBC saved a crucial British lender for technology start-ups by purchasing the UK arm of Silicon Valley Bank for a symbolic one-pound last month.