SVB failure: UK sale to HSBC, US actions, depositor protection, lending/derivatives impacts, and stablecoin regulation—key legal issues for UK practitioners

Published by a LexisNexis Banking & Finance expert

Practice notes

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Silicon Valley Bank concentrated on providing finance to businesses—particularly early‑stage firms—in the technology and life sciences fields. Escalating concerns about the bank’s resilience triggered the withdrawal of tens of billions in deposits by customers, prompting regulatory intervention on Friday 10 March 2023 in the largest failure of a US bank since 2008. UK authorities took corresponding action. This Practice Note highlights the key matters arising from the collapse, including context, effects on deposits, lending arrangements and derivative positions, and implications for stablecoins and cryptoassets. It also signposts general resources on the legal issues surrounding bank stability.

What has happened in the US?

On 10 March 2023, California financial regulators seized Silicon Valley Bank, California (SVBUS) citing inadequate liquidity and insolvency, appointing the Federal Deposit Insurance Corporation (FDIC) as receiver. On 12 March 2023, the Federal Reserve, the FDIC and the Treasury Department released a joint statement confirming the FDIC’s resolution of SVBUS in a manner that fully protects all depositors. See also the updated FDIC Frequently Asked...

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Web page updated on 22/05/2026

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