Silicon Valley Bank staff offered 45 days of work at 1.5 times pay by US regulator after lender collapses
The frenetic two-day run on the bank blindsided observers and stunned markets, wiping out more than US$100 billion in market value for US banks.
SVB ranked as the 16th biggest bank in the US at the end of last year, with about US$209 billion in assets and US$175.4 billion in deposits.
“Everyone is working with FDIC to stabilise the situation as quickly as possible,” California Governor Gavin Newsom said in a statement.
The lender’s main office in Santa Clara, California and its 17 branches in California and Massachusetts will reopen on Monday, the FDIC said in a statement on Friday.
SVB Securities, a broker-dealer owned by the bank’s former parent group, said on Saturday that its business would not be directly impacted by Silicon Valley Bank’s failure.
Some businesses with holdings at the failed bank are already receiving offers from hedge funds to buy their stranded deposits for as little as 60 cents on the dollar, Semafor, a news website, reported on Saturday, citing people familiar with the matter.