2023-05-22 15:47:45 ET
First Citizens Bank ( NASDAQ: FCNCA ) sued U.K. banking giant HSBC ( NYSE: HSBC ) for allegedly poaching 42 employees of Silicon Valley Bank two weeks after First Citizens bought the failed regional lender in March, according to a lawsuit filed Monday in San Francisco federal court.
The complaint further accused HSBC ( HSBC ), which recently acquired SVB's U.K. arm, of misused SVB's proprietary and trade secret information to roll out its own venture banking business in the U.S.
In turn, First Citizens is seeking more than $1B in damages.
The suit alleged that David Sabow, who led the technology and healthcare banking unit before moving to HSBC ( HSBC ), was "the chief architect of this scheme," having helped to identify six core U.S. leaders to hire, as well as 35 more SVB professionals.
"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," the suit said .
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First Citizens sues HSBC for allegedly poaching Silicon Valley Bank staff