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

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

Workers will be enrolled and given benefits information over the weekend by the FDIC, and health information will be provided by former parent SVB Financial Group ( SIVB.O ), the FDIC wrote in an email titled “Employee Retention” late on Friday . SVB had a workforce of 8,528 at the end of last year.

Staff were asked to continue working remotely, except for essential workers and branch staff.

The FDIC did not immediately respond to a request for comment.

Silicon Valley Bank imploded after depositors, worried about the lender’s financial health, rushed to withdraw their deposits. The frantic two-day run on the bank blindsided observers and stunned markets, wiping out more than $100 billion in market value for US banks. SVB ranked as the 16th largest bank in the United States at the end of last year with about $209 billion in assets and $175.4 billion in deposits.

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

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

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

Our standards: Thomson Reuters Trust Principles.

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