On Monday, First Citizens BancShares Inc (FCNCA.O), which purchased Silicon Valley Bank after its bankruptcy, sued HSBC Holdings PLC (HSBA.L) for illegally hiring over 40 of the collapsed bank’s employees.
The San Francisco, federal court action alleges that HSBC violated federal law by recruiting away the workers to steal Silicon Valley Bank’s (SVB) trade secrets.
First Citizens sued for over $1 billion.
HSBC did not comment. The U.S. Federal Deposit Insurance Corporation took over SVB on March 10 after depositors rushed to withdraw their money in a bank run that also brought down Signature Bank and wiped away more than half the market value of other regional institutions.
Later in March, First Citizens bought SVB’s assets and deposits for up to $500 million in stock, a fraction of its pre-failure value.
HSBC bought SVB UK.
Monday’s complaint targets HSBC and six former SVB employees, including former technology and healthcare banking head David Sabow. First Citizens claims those workers plotted to steal 40 SVB employees and the bank’s business.
“HSBC and Sabow short-circuited the normally expensive and lengthy process to do things such as conduct market research and develop competent financial projections necessary for launching a commercial banking business,” First Citizens said in the lawsuit.
In April, HSBC hired dozens of Silicon Valley Bank staff to help the bank build a dedicated practice serving technology and healthcare companies and investors.
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