Founders and venture capitalists aren’t the only ones in trouble right now. Employees at Silicon Valley Bank believe their jobs are in flux as their employers collapse. The SVB, which was closed yesterday, is now run by regulators. And although the employee is no longer employed by the bank, he received an email from the “CEO’s Office” that he has a job for the next 45 days at 1.5 times his current salary.
The process of registering all SVB employees with the Santa Clara Deposit Insurance National Bank (DINBSC) will continue until the end of the week, according to emails confirmed to TechCrunch by multiple sources. In addition to the increase in wages and temps, an overtime worker will get double wages when he works overtime, the email explains. All employment is subject to “acceptable performance”.
“The FDIC requires that all existing Silicon Valley Bank employees working in the United States, including essential contractors, continue to operate at DINBSC,” the email reads.
The SVB has also sent a memo to employees advising them to work from home until further notice as they are having “conversations to determine the bank’s next steps,” said the usually trusted market. According to tracker Deltaone. The memo was written from the CEO’s office calling for the continuation of existing remote work arrangements, with the exception of “critical staff, branch employees and contractors.” said.
The move comes after the SVB said Wednesday it had lost $1.8 billion on the sale of Treasuries and mortgage-backed securities it had invested in due to rising interest rates. Banks also said they were raising more capital and investing in higher yielding products, as panic continued and founders were advised to withdraw money from VCs or diversify from banks. His stock fell more than 50% as withdrawals flooded in.
In yesterday’s release, the FDIC advised, “Customers with accounts over $250,000 should contact the FDIC toll-free at 1-866-799-0959.”
Current or former employees of Silicon Valley Bank, or those affected by its bankruptcy, can contact Natasha Mascarenhas on Twitter @nmasc_ or Signal (+1 925 271 0912). Anonymous requests will be honored.
