Silicon Valley Bank

Debate between Sammy Wilson and Andrew Griffith

Monday 13th March 2023 Commons Chamber

[Andrew Griffith]

It would not be right for me to answer on behalf of the Bank of England, if my right hon. Friend will forgive me. We have an independent regulator that looks at these matters. The Treasury Committee regularly takes evidence from the Bank of England, and I am sure it will do so in future.

[Sammy Wilson (East Antrim) (DUP)]

I am sure that many firms across the United Kingdom will welcome, and breathe a sigh of relief at, the decision that was made over the weekend. However, this was done in haste. I ask the Minister: what kind of due diligence was done by HSBC when arranging this takeover, and is he sure that we are not walking into a situation similar to what we had with Lloyds and HBOS in 2008, when a quick decision led to a domino effect in the banking system and resulted in bail-outs by the taxpayer?

[Andrew Griffith]

I cannot speak for the due diligence that was done for HSBC, but it has got itself comfortable with it. We should also understand the relative scale of HSBC, which is an extraordinarily well-regulated, global and diverse bank. My understanding is that if we add all of the important clients of Silicon Valley Bank UK, which we had in the front of our mind as we sought to act over the weekend—if I may say so, we make no apology for acting in haste, because haste was absolutely the required procedure in this particular case—they would in their entirety be less than 1% of the overall client base of HSBC. With respect, I do not think that was the case in the examples to which the right hon. Member referred.