Topic Centers

Distressed Banks



The Silicon Valley Bank (SVB) closure, and subsequent Federal Deposit Insurance Corporation (FDIC) receivership, has created a plethora of legal implications and potential risks for the financial sector and other industries. Our U.S./UK multi-practice SVB Task Force provides guidance to those affected by this incident and other issues that will arise in connection with them.


What you need to know


SVB, the U.S.’s 16th largest bank, was closed on Friday, March 10, 2023 and the FDIC was appointed as receiver. On Sunday, March 12, the U.S. Department of the Treasury, Federal Reserve, and FDIC announced in a joint statement that all depositors of SVB would have access to all of their deposits (not just FDIC-insured deposit amounts) on Monday, March 13. Therefore, there is no loss to depositors associated with SVB’s closure.

SVB’s UK operations were conducted through its subsidiary, Silicon Valley Bank UK Limited (SVBUK). On Monday, 13 March 2023, HSBC UK Bank PLC bought the UK subsidiary for £1 with the deal announced at 7 a.m. (GMT) before markets opened. The Bank of England used special bank resolution powers under the Banking Act 2009 to effect the sale and has provided a temporary waiver from the UK’s ringfencing regime. Following the acquisition, HSBC and SVBUK have stressed that they intend to continue business as usual for SVBUK’s clients, including depositors and borrowers.

The UK position


SVB UK has been acquired by HSBC UK Bank PLC. The transfer took place at 7 a.m. (GMT) on Monday, 13 March 2023. Following the transfer, SVB UK continues to operate as normal under new ownership as part of the HSBC group. Customers can access their deposits and draw down on existing facilities as normal.

Access our practical advice on navigating the SVB closure



Questions and concerns in relation to both SVB and SVBUK may be directed to the Silicon Valley Bank (SVB) Task Force at [email protected]. Please register here to receive timely updates and information on upcoming events hosted by our Task Force.

External resources:

HM Treasury Press Release (13 March 2023)

Joint Statement by Treasury, Federal Reserve, and FDIC (12 March 2023)

FDIC Press Release (10 March 2023)

FDIC SVB Resource Center



Insights and Analysis

Payments: East to West

Following our successful Payments Conference last September, Hogan Lovells' cross-border team has recorded these two sessions which take an in-depth look at topics that generated...

Insights and Analysis

Fighting sophisticated crime – Further anti-money laundering legal developments in Singapore

The Singapore Ministry of Finance (MOF) and the Accounting and Corporate Regulatory Authority of Singapore (ACRA) have jointly proposed two bills: the first, designed to strengthen the...


The Influencers Podcast: Behind the AI Act

In this episode of The Influencers, Kai Zenner (Digital Policy Adviser, European Parliament) and Hogan Lovells host Leo von Gerlach discuss behind-the-scenes insights and repercussions of...


Enforcement risks increase: DOJ and SDNY initiate self-disclosure pilot programs for individuals

In the past several years, the U.S. Department of Justice (DOJ) has been pursuing a variety of strategies to increase the number of corporate criminal prosecutions. As Assistant Attorney...

Insights and Analysis

Optimists see opportunities; pessimists see risk. Your counsel should see both.

The India - Middle East - Europe Economic Corridor (IMEC) is expected to generate significant investment opportunities in sectors such as construction, rail, shipping, logistics, energy and ...


EU adopts directive criminalising sanctions violations

On 24 April 2024, the European Union adopted a directive criminalizing the following sanctions violations: Making funds available to or failing to freeze assets of sanctioned...

Loading data