The collapse of Silicon Valley Bank has resulted in the Federal Deposit Insurance Corp (FDIC) taking control of the bank. The FDIC has offered the bank’s employees the opportunity to continue working for the bank for 45 days and receive 1.5 times their salary during this period. This is likely a measure to retain key employees during the transition period as the FDIC takes control of the bank’s operations.
Over the weekend, the FDIC will enrol workers and provide them with details about benefits, while healthcare information will be given by SVB Financial Group (SIVB.O), the former parent company. SVB Financial Group had a workforce of 8,528 employees as of the end of 2022.
According to the same email mentioned earlier, employees have been instructed to continue working remotely, except for those who are deemed essential workers or who work in branches. At the time of this writing, the FDIC has not yet commented on this matter.
Silicon Valley Bank collapsed as depositors, worried about the bank’s stability, frantically withdrew their deposits in a two-day rush. This sudden turn of events caught observers off guard and sent shockwaves through the markets, resulting in a loss of over $100 billion in market value for American banks.
As of the end of last year, SVB was the 16th largest bank in the United States, with assets of around $209 billion and deposits of $175.4 billion. The FDIC announced in a statement on Friday that the bank’s main office in Santa Clara, California, and all 17 of its branches in California and Massachusetts will resume functioning from today.