Silicon Valley Bank collapsed Friday morning after a stunning 48 hours in which a bank run and a capital crisis led to the second-largest failure of a financial institution in US history.
Heavy losses were recorded in the stock markets around the world in the wake of the capital liquidity problems of the American Silicon Valley bank.
SVB workers were offered 45 days’ work and 1.5 wages by the government agency (Federal Deposit Insurance Corp – FDIC) that took control of collapsed SVB yesterday, according to an - to the bank’s staff, which read Reuters.
Bank employees will be registered and given information about their weekend benefits from the FDIC, while details of their insurance coverage will be provided by the bank’s former parent company SVB Financial Group, the FDIC said in an - sent late last night titled “Employee Retention.”
SVB had 8,528 employees at the end of 2022.
California regulators closed down the tech lender and put it under the control of the US Federal Deposit Insurance Corporation. The FDIC is acting as a receiver, which typically means it will liquidate the bank’s assets to pay back its customers, including depositors and creditors.
The FDIC, an independent government agency that insures bank deposits and oversees financial institutions, said all insured depositors will have full access to their insured deposits by no later than Monday morning. It said it would pay uninsured depositors an “advance dividend within the next week.”