Connect with us

Hi, what are you looking for?

General News

Silicon Valley Bank gave company-wide bonuses hours before it collapsed: report


We gather the news that is the most important to you. As the most reliable and balanced news service on the internet, Unite America First offers the following information published by Fox News:

Silicon Valley Bank employees received their annual bonuses on Friday just hours before the government took control of the company, according to reports.

SVB traditionally processes annual bonuses on the second Friday of March, unnamed sources associated with the bank told CNBC. The bonuses were reportedly for work completed in 2022.

SVB did not immediately respond to a request for comment from Fox News Digital.

The Santa Clara, California-based band collapsed last week and is now under the control of federal regulators. SVB had been the 16th-largest bank in the U.S. prior to the bank run that led to its downfall.

The bank held a reputation as a go-to for a number of Silicon Valley industries and startups. Y Combinator, an incubator startup that launched Airbnb, DoorDash and DropBox, regularly referred entrepreneurs to them.

SVB’s collapse was so quick that, hours before its closure, some industry analysts were hopeful that the bank was still a good investment. The bank’s shares had fallen by 60% on Friday morning after a similar drop the day before.

Anxious depositors rushed to withdraw their money over concern for the bank’s health, causing its collapse, which may serve as “an extinction-level event for startups,” according to Y Combinator CEO Garry Tan.

Entrepreneur and Dallas Mavericks owner Mark Cuban called for federal regulators to buy out the bank earlier on Friday.

“The Fed should IMMEDIATELY buy all the securities/debt the bank owns at near par, which should be enough to cover most deposits,” Cuban wrote as part of a lengthy Twitter chain last week. “Any losses paid for in equity and new debt from the new bank or whoever buys it. The Fed knew this was a risk. They should own it.”

SVB Headquarters

Silicon Valley Bank closed after a devastating bank run last week. (Photographer: Philip Pacheco/Bloomberg via Getty Images / Getty Images)

“If the Fed doesn’t own it, trust in the banking system becomes an issue,” Cuban argued. “There are a ton of banks with more than 50 pct uninsured deposits.”

CLICK HERE for more news from Fox Business.

Click to comment

Leave a Reply

Your email address will not be published.

Will Johnson

30 minutes 35 seconds ago


Reality Check Podcast


Patriot Supply

You May Also Like

Copyright © 2022 Unite America First. Turbocharged by Adrevv