The new owner of Silicon Valley Bank has sued HSBC and several former employees for more than $1bn, claiming the group “engineered a scheme to plunder” SVB of top bankers and confidential information.
First Citizens, which bought SVB after its dramatic failure, claims in the lawsuit that HSBC and a former senior SVB banker co-ordinated the scheme to strip the “core of [SVB’s] profitability engine”.
SVB’s March failure in the US also toppled its UK affiliate. Days later HSBC had agreed to buy the failed UK entity from the Bank of England for a nominal price of £1.
David Sabow, a senior executive at SVB in the US, joined HSBC “within days” of the UK deal, according to the lawsuit.
Read more about First Citizens’ suit against HSBC here.
This article was originally published by Www.ft.com. Read the original article here.