Silicon Valley Bank employees offered 45 days of work at 1.5 times wages, FDIC email shows

NEW YORK, March 11 (Reuters) – Silicon Valley Bank employees were offered 45 days of work at one and a half times their salary by the Federal Deposit Insurance Corp, the US regulator that took control of the collapsed lender on Friday, according to an email to employees seen by Reuters.

Workers will be enrolled over the weekend and given information about benefits by the FDIC, and health care details will be provided by former parent company SVB Financial Group (SIVB.O), the FDIC wrote in an email late Friday with the title “Employee Retention”. SVB had 8,528 employees 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 financial health, rushed to withdraw their deposits. The bank’s frantic two-day run dazzled observers and stunned markets, wiping out more than $100 billion in market value for US banks. SVB was the 16th largest bank in the United States at the end of last year, with approximately $209 billion in assets and $175.4 billion in deposits.

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Members of the California congressional delegation will be briefed Saturday by FDIC officials, according to a Politico report, which cited two people familiar with the situation.

The lender’s headquarters in Santa Clara, Calif., and all of its 17 branches in California and Massachusetts will reopen Monday, the FDIC said in a statement Friday.

Reporting by Lananh Nguyen in New York and Pete Schroeder in Washington; Edited by Megan Davies, Franklin Paul and Paul Simao

Our Standards: The Thomson Reuters Principles of Trust.


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