HSBC sued for $1bn by new SVB owner for 'plundering' staff - reports

Dubbed Project Colony

clock • 2 min read

HSBC has been accused by First Citizens, which acquired Silicon Valley Bank after its collapse, of breaking the law by poaching more than 40 employees from the failed American bank.

First Citizens is suing HSBC, which acquired the British arm of SVB following its sudden failure in March, for $1bn for "brazenly" seeking to "plunder" trade secrets, according to reports, which HSBC has declined to comment on. California regulator admits 'inadequate' oversight of SVB Claims in the lawsuit state HSBC and a former senior SVB banker co-ordinated the scheme, dubbed "Project Colony", to strip the "core of [SVB's] profitability engine" in the form of certain staff. HSBC bought SVB UK for £1 in March, days after the implosion of its American owner, a regional lender bas...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Companies

Fidelity to merge Japan Smaller Companies fund with £450m Japan strategy

Fidelity to merge Japan Smaller Companies fund with £450m Japan strategy

‘Uneconomic to operate’

clock 21 February 2024 • 1 min read
Jupiter forced to divest crypto ETP holding on compliance team demands

Jupiter forced to divest crypto ETP holding on compliance team demands

21Shares’ Ripple XRP ETP

clock 16 February 2024 • 1 min read
Meta dividend 'not enough to get traditional income investors excited'

Meta dividend 'not enough to get traditional income investors excited'

Out of 'exciting growth opportunities'

Eve Maddock-Jones
clock 15 February 2024 • 3 min read
Trustpilot