Founders and venture capitalists aren’t the only ones experiencing volatility right now: Silicon Valley Bank employees are seeing their jobs change as their employer unravels. SVB, which was closed yesterday, is now in the hands of regulators. And although the employees are no longer employed by the bank, they received an email from “the CEO’s office” telling them they had work for the next 45 days for 1.5 times their current salary.
The email, confirmed by multiple sources to TechCrunch, says that the enrollment process for all SVB employees in the Banco Nacional de Santa Clara Deposit Insurance (DINBSC) will take place over the weekend. Along with the increase in salary and momentary employment, the email explains that hourly workers will be paid double if they work overtime. Employment for all depends on “acceptable performance”.
“The FDIC requests that all existing Silicon Valley Bank employees working in the United States, including essential contractors, continue their work for DINBSC,” the email read.
SVB had also sent a memo to employees advising them to work from home until further notice as it is engaged in “discussions to determine next steps for the bank,” according to the typically reliable market tracker Deltaone. This weekend’s memo says existing remote work arrangements must continue, except for “essential personnel, branch employees and contractors.”
“Without commenting on salaries, it is our standard practice to ask bank employees to assist with an orderly transition as part of our resolution process,” an FDIC spokesperson told TechCrunch via email.
Axios also published a story today, citing sources, claiming that Silicon Valley Bank paid previously scheduled annual bonuses to eligible US employees hours before regulators took over. The bonuses were not sent to all employees, specifically those in other countries.
The series of moves comes after SVB announced on Wednesday that it lost $1.8 billion on the sale of US Treasury bonds and mortgage-backed securities it had invested in, due to rising interest rates. . The bank also said it was raising more capital and investing in higher-performing products. Panic ensued, sending the stock price tumbling more than 50% as it was met with a stampede of withdrawals from founders who were advised by their venture capitalists to cash out or diversify out of the bank .
In its statement yesterday, the FDIC advised that “customers with accounts exceeding $250,000 should contact the FDIC toll free at 1-866-799-0959.”
If you are a current or former employee of Silicon Valley Bank or have been affected by its collapse, you can contact Natasha Mascarenhas on Twitter @nmasc_ or on Signal at +1 925 271 0912. Requests for anonymity will be respected.
