HSBC Bank Sued For Poaching SVB Staff By First Citizens

First Citizens BancShares bought Silicon Valley Bank after it was seized by the government. HSBC is being sued by First Citizens BancShares for hiring over 40 employees from SVB to start a similar venture banking business. First Citizens is claiming that this action is illegal and the damages should amount to $1 billion.

This is a picture of a sign outside an HSBC Bank branch in Croydon, Surrey, UK. It was taken on March 1, 2007.

First Citizens filed a complaint in court. They said HSBC took their employees using secret information. This broke their contract and gave HSBC an unfair advantage.

David Sabow worked at SVB before joining HSBC in April. He was responsible for banking in technology and healthcare. According to the complaint, he helped HSBC find six key leaders and 35 SVB professionals to recruit.

First Citizens complained that HSBC and Sabow took shortcuts to start their commercial banking business. They did not follow the long and costly process.

Forbes asked HSBC for comment. HSBC did not reply right away.

First Citizens got $72 billion in assets from SVB for $16.5 billion because SVB failed in March. First Citizens has bought over 20 failed banks since 2008. HSBC also helped after SVB failed. HSBC hired some SVB bankers in April to help their new banking venture for tech and healthcare companies.

HSBC bought SVB's U.K. division for $1.21. The deal didn't include SVB U.K.'s parent company's assets or debts.

One bank bought another bank. Now, the buyer is suing HSBC. They think HSBC is stealing their staff. The bank that bought the Silicon Valley Bank is the one suing. CBC reported on this news story.

First Citizens has sued HSBC for stealing its staff and secrets from SVB.

First Citizens Bank is buying SVB. Forbes has listed other failed banks that First Citizen Bank acquired in the past.

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