The UK arm of Silicon Valley Bank handed out approximately 15 million pounds in bonuses days after it was bailed out by HSBC, Sky News reported on Saturday. According to several sources, the bonuses could have amounted to up to 20 million pounds.
Reports have stated that the bonuses that were issued were under the authorization of HSBC, which signed off on the decision. According to the sources, these bonuses would not have been paid out had HSBC not acquired the UK arm of SVB while the bank was still solvent.
Last Friday, the U.S.-based Silicon Valley Bank was placed under the control of U.S. regulators in what was the largest banking failure since the 2008 financial crisis.
On Friday, a week after the collapse, the U.S. parent company SVB Financial Group confirmed that it filed for a court-supervised reorganization under Chapter 11 bankruptcy proceedings. This would see the company seek buyers for its assets.