Silicon Valley Bank’s UK subsidiary paid out greater than $18 million in bonuses this week – just days after HSBC stepped in as part of a bailout deal to save lots of the institution from insolvency.
Payouts to employees, including senior executives, got the green light earlier this week by HSBC, the brand new owner of SVB UK, Sky News reported. HSBC has bought the U.S. bank’s UK arm for £1 in a deal facilitated by the Bank of England after its parent company collapsed in a social media-fueled banking run.
The bonus pot was described as “modest” and ranged from $18 million to $24 million, based on Sky News sources.
Insiders said that if SVB UK had not been solvent on the time of the takeover, the bonuses wouldn’t have been paid out.
SVB employees in the USA reportedly also received annual bonuses, just hours before the bank collapsed on March 10.
![HSBC UK branch](https://nypost.com/wp-content/uploads/sites/2/2023/03/NYPICHPDPICT000008187700.jpg?w=1024)
Federal regulators last week shut down SVB, previously the Sixteenth-largest U.S. bank based in Santa Clara, California, after the financial institution failed. The crash got here shortly after SVB disclosed a $1.8 billion loss on the sale of its bonds, spooking customers who began to fret they’d not give you the option to withdraw their funds.
SBV Financial Group, the parent company of the failed Silicon Valley Bank, filed for Chapter 11 bankruptcy protection on Friday.