HSBC buys Silicon Valley Bank UK

British bank HSBC will buy Silicon Valley Bank UK Limited, according to a statement from the Bank of England.

The Bank of England said the action was taken “to stabilize SVBUK, ensure the continuity of banking services, minimize disruption to the UK technology sector and support confidence in the financial system.”

Silicon Valley Bank sent shockwaves through the banking sector and markets more broadly when it surprised investors on Wednesday with news that it had to raise $2.25 billion to shore up its balance sheet and that it had sold all of its bonds at a loss of 1.8 billion dollars.

The bank was then shut down by regulators after customers withdrew $42 billion in deposits by the end of Thursday.

HSBC said it will buy SVBUK for £1.

—Hannah Ward-Glenton and Matt Rosoff contributed to this report.

Silicon Valley Bank went under on Friday, and investor Leon Cooperman believes this situation is a byproduct of low interest rates from the Federal Reserve.

“This is the result of stupid monetary policy with zero-to-negative interest rates for a decade,” Cooperman, the head of Omega Advisors, told CNBC’s Scott Wapner.

The Fed lowered interest rates to zero to stabilize the economy after the 2008 financial crisis. Interest rates remained low for years after until the Fed began raising in the late 2010s. However, in 2020 the central bank brought interest rates back to zero as Covid-19 spread across the world.

Over the past year, the central bank has raised interest rates to curb inflationary pressures.

— Fred Imbert

The world is undergoing a “rapid and transformative change” when it comes to energy, Citi said, naming four buy-rated stocks as “top picks” in the space.

CNBC Pro subscribers can read more here.

— Weizhen Tan

Regulators scrambled to avert a banking crisis over the weekend, with a key goal being to “strengthen public confidence” in the US banking system.

A joint statement from Treasury Secretary Janet Yellen, Federal Reserve Chairman Jerome Powell and FDIC Chairman Martin Gruenberg said depositors at Silicon Valley Bank and New York’s Signature Bank will have access to all their money as soon as Monday.

“No losses associated with the resolution of Silicon Valley Bank will be borne by taxpayers,” they said.

—Christina Cheddar Berk

Futures extended their gains just before 6:30 p.m. ET after U.S. regulators unveiled a plan to stem the damage from the collapse of Silicon Valley Bank.

Dow futures were last higher by 297 points, or 0.9%. S&P 500 futures rose 1.1% and Nasdaq Composite futures rose 1.2%.

– Tanaya Machel

European markets are headed for a higher open Monday as investors eye the fallout from the Silicon Valley Bank crisis.

Britain’s FTSE 100 index is expected to open 10 points higher at 7,745, Germany’s DAX 82 points higher at 15,477, France’s CAC up 26 points at 7,228 and Italy’s FTSE MIB up 21 points at 27,312, according to data from IG.

Earnings are expected to come from Direct Line and there are no major data releases.

—Holly Ellyatt