Exclusive: Two months after Silicon Valley Bank (SVB), the world's largest tech sector bank, collapsed, SVB Israel's management team has joined HSBC, as part of its move announced earlier this week to launch a global tech banking business.
The Israeli management team comprising five executives, including the founder of SVB's Israel branch David Cohen and his long-time partner Gadi Moshe, have been recruited by HSBC in London, and will be a part of the global tech banking activities being established that will include providing deposits, credit and venture capital loans services to companies in the tech and life sciences sectors.
According to LinkedIn, SVB Israel has 20 employees and it remains unclear if they will continue to work with the bank after the transfer of its management.
The move to HSBC by SVB Israel's management is not an acquisition deal, as was done in the UK where the banking giant bought the British branch of SVB for £1. Cohen, Moshe and the other managers were hired on personal contracts and are now expected to encourage their clients in Israel to transfer deposits and loans from SVB to HSBC. While five senior managers from the Israeli team will move to HSBC, it is not known what will happen to the 15 other SVB employees who were employed at the Israeli representative office on the eve of the collapse.
It is believed that the initiative for the move came from Erin Platts, Head of EMEA and CEO of SVB UK. Platts supervised SVB's Israel office, which was opened in 2008, and maintained working relationships with David Cohen and Gadi Moshe, even after the collapse of the bank. At the same time, while SVB in the UK operated as a bank for all intents and purposes, in Israel it operated through a representative office without a banking license. The bank was not registered as a foreign bank, and not subject to banking regulations.
Thus end SVB's Israeli activities, where until now it acted as a commercial office serving SVB on the US West Coast. Last month, the global operations of SVB, apart from the UK operations, were acquired by First Citizens Bank.
HSBC said, "We are delighted that David Cohen and his senior and leading banking team are joining us in our continued expansion and support for this growing industry."
Published by Globes, Israel business news - en.globes.co.il - on May 4, 2023.
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