Employees of Silicon Valley Bank were offered 45 days of employment at 1.5 times their salary by the Federal Deposit Insurance Corp, the regulator that took control of the collapsed lender on Friday, according to an email to staff seen by Reuters.
Workers will be enrolled and given information about benefits over the weekend by the FDIC, and healthcare details will be provided by the former parent company SVB Financial Group, the FDIC wrote in an email late Friday entitled “Employee Retention.” SVB had a workforce of 8,528 at the end of last year.
Staff were told to continue working remotely, except for essential workers and branch employees.
The FDIC did not immediately respond to a request for comment.
Silicon Valley Bank imploded after depositors, concerned about the lender’s health, rushed to withdraw their deposits.
The frenetic two-day run on the bank blindsided observers and stunned markets, wiping out more than $100 billion in market value for US banks.
SVB ranked as the 16th biggest bank in the US at the end of last year, with about $209 billion in assets and $175.4 billion in deposits.
The lender’s main office in Santa Clara, California and all of its 17 branches in California and Massachusetts will reopen on Monday, the FDIC said in a statement Friday.
SVB deep dive: Why is everyone talking about the bank now?The startup world was thrown into chaos Thursday when a lender little-known outside of Silicon Valley sparked a wave of panic in tech circles that ... Banking & Finance
Crypto.com to cut 20 pct jobs as industry rout deepens after FTX collapseCrypto.com said on Friday it would be reducing about 20 percent of its workforce, as cryptocurrency exchanges face industry-wide challenges brought on ... Technology
Biden budget plan would cut US deficit by $3 trillion in decade: White HouseUS President Joe Biden will unveil a proposed budget on Thursday that would reduce the US national deficit by $3 trillion over the next decade, in ... World News