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SVB Collapse

SVB’s New Owner, the FDIC, Gives Workers 45 Days of Employment

  • Regulators want to incentivize workers to stay with more pay
  • FDIC aims to find buyers for the firm’s various businesses
Bloomberg business news
Former US Treasury Secretary Larry Summers warns of very substantial consequences if regulators don’t work through the issues that contributed to the Silicon Valley Bank collapse. He also explains why the vaunted stress tests didn’t predict the implosion.Source: Bloomberg

The Federal Deposit Insurance Corporation added a few new employees to its payroll late Friday, taking on workers from shuttered Silicon Valley Bank, at least for a few weeks, as it serves as receiver of the collapsed lending institution. 

The newly-formed entity, the Deposit Insurance National Bank of Santa Clara, or DINBSC, sent a letter to employees offering 45 days of employment, according to a copy of the message seen by Bloomberg. After the 45 days, the employees will be let go, the letter states.