Silicon Valley Bank Crisis: Employees Got Bonuses Hours Before Government Takeover

According to the latest reports, the Silicon Valley Bank employees received their annual bonuses Friday just hours before regulators seized the failing bank, according to people with knowledge of the payments. The payments were for work done in 2022 and had been in process days before the bank’s collapse, these people said. Check out the latest about all this.

CNBC notes the fact that The Santa Clara, California-based bank has historically paid employee bonuses on the second Friday of March, said the people, who declined to be identified, speaking about the awards.

The payments were for work done in 2022 and had been in process days before the bank’s collapse, the sources said.

“This year, bonus day happened to fall on SVB’s final day of independence. The institution, in the throes of a bank run triggered by panicked venture capital investors and startup founders, was seized by the Federal Deposit Insurance Corporation (FDIC) around midday Friday,” CNBC said.

On Friday, SVB CEO Greg Becker addressed workers in a two-minute video in which he said that he no longer made decisions at the 40-year-old bank, according to the people.

“The size of the payouts couldn’t be determined, but SVB bonuses range from about $12,000 for associates to $140,000 for managing directors,” according to Glassdoor.com.

Bitcoin just bounced off a historical line of support at $20,000 as the Biden Administration launched an all-out assault on crypto and the 50 million American citizens and voters who own digital assets.

“The latest jab stems from President Biden’s dead on arrival tax plan, which would impose a 30% tax on the energy used for Bitcoin mining, reports the New York Times,” according to the reports coming from the online publication the Daily Hodl.

The plan would also stop crypto investors from selling assets at a loss and quickly rebuying them in order to save on taxes, reports Bloomberg.