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Employees of Silicon Valley Bank — a subsidiary of SVB Financial Group SIVB — have reportedly been offered 45 days of employment at 1.5 times their salary following the collapse of the bank, which has sent shockwaves globally.
What Happened: The Federal Deposit Insurance Corp (FDIC) — the U.S. regulator that took control of Silicon Valley Bank on Friday — offered the bank’s employees 45 days of work at 1.5 times their salary, according to an email sent to staff, reported Reuters.
See Also: SVB Financial CEO Sold $3.6M In Shares Prior To Bank’s Collapse: Here Are Other Insider Sellers
In an email titled “Employee Retention,” the FDIC informed the bank’s staff — besides those who are essential workers and branch employees — that they should continue working remotely. The FDIC also stated that workers would be given information about their benefits, while healthcare details would be provided by SVB Financial Group.
Silicon Valley Bank had a workforce of 8,528 at the end of 2022, according to Reuters.
SVB Financial Group has struggled to raise additional capital, and worries about cash burn and liquidity caused its bank’s shares to plummet last Thursday and Friday. Amid fears about the bank’s financial stability, depositors hurried to withdraw their funds, leading to the bank’s implosion.
Cryptocurrency companies and investors were among those impacted by the collapse. The technology and biotech industries, two of the largest sectors that have financial relationships with and deposits in Silicon Valley Bank, may also experience a ripple effect.
Following the bank’s collapse, hedge fund manager Bill Ackman sought immediate action from the government. On Saturday, Ackman tweeted, “The gov’t has about 48 hours to fix a soon-to-be-irreversible mistake.”
Read Next: EXCLUSIVE: No, Silicon Valley Bank Collapsing Doesn’t Mean The Sky Is Falling: Here’s Why
Photo: Shutterstock
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Image and article originally from www.benzinga.com. Read the original article here.