Foreign

April 12, 2023

HSBC employs Silicon Valley Bank bankers for tech, healthcare

HSBC hires SVB bankers for tech, healthcare

By Biodun Busari

Financial services company, HSBC Holdings PLC’s (HSBA.L), the United States unit has hired a lot of Silicon Valley Bank bankers led by David Sabow, who most recently led the technology and healthcare banking division for the California-based bank that failed last month.

HSBC USA revealed in a statement that the employment will support the bank establish a committed banking practice targeted at serving companies in technology and healthcare, as well as investors who support them, Reuter said.

The statement said HSBC has initially brought together a team of more than 40 bankers in the San Francisco Bay Area, Boston and New York City as part of this initiative.

The Federal Deposit Insurance Corporation (FDIC) took over Silicon Valley Bank on March 10 after depositors hurried to pull out their money in a bank run that also brought down Signature Bank and wiped out more than half the market value of several other US regional lenders.

According to Reuters, the US regulators last month decided to backstop a deal for regional lender First Citizens BancShares (FCNCA.O) to acquire failed Silicon Valley Bank, causing an estimated $20 billion hit to a government-run insurance fund.

HSBC said other hires included Sunita Patel, who will oversee investor coverage and business development for the technology and healthcare market, Katherine Andersen who will lead life sciences and healthcare, and Melissa Stepanis, who will oversee technology.

HSBC’s new banking practice will sit within the bank’s US commercial banking business, it said.

HSBC last month bought the UK arm of Silicon Valley Bank for a symbolic one pound, rescuing a key lender for technology start-ups in Britain.