Markets have not been reassured by HSBC’s purchase of the beleaguered Silicon Valley Bank UK (SVB UK).

While the pound is up, to a three-week high of $1.2089, it’s a story of dollar weakness rather than sterling strength as major banks have not made up for the losses sustained on Friday as the crisis unfolded.

The FTSE 100 index of the most valuable companies listed on the London Stock Exchange was down 2%. It hit 7,553 on Monday morning – a low not seen since the early days of 2023 and down from 7,883 on Thursday afternoon.

Major UK banks had not yet recovered from the experience of the shock on Friday evening and also continued to fall.

Bank stocks globally took a big hit on Friday as financial markets were spooked and the impact continues to be seen.

NatWest shares stood at 284.1p on Monday morning, down from 292.9p at the close of trading on Thursday.

Lloyds stock fell to 48.3p a share from 51.46p before the SVB news hit on Thursday afternoon.

Similarly, Barclays shares fell to 155.16p, down from 163.42 compared to four days previous.

There has been no benefit, so far, for HSBC shareholders from its latest acquisition of the £8.8bn balance sheet lender for just £1.

HSBC shares fell along with the other major UK banks to 568.8p per share, down from 622.2p on late Thursday afternoon.

Susannah Streeter, head of money and markets, Hargreaves Lansdown said: “HSBC shareholders may have some concerns about the bank snapping up assets which have been under such a cloud of uncertainty, particularly the exposure to bonds, but HSBC says it expects a gain to arise from the acquisition.”

Customers of SVB UK number more than 3,000 and include businesses like Moonpig and Notonethehighstreet.

But a flurry of companies scrambled to distance themselves from SVB UK and reassure investors they are unaffected.