Silicon Valley Bank gave out huge staff bonuses before it collapsed
Callum Jones
Featured Image Credit: Xinhua / Alamy Stock Photo/REUTERS / Alamy Stock Photo
Silicon Valley Bank apparently gave out huge bonuses to its staff just hours before the financial institution collapsed.
Over the weekend, the US banking system was thrown into chaos after one of the biggest banks in the country collapsed.
It comes as the Monday rush and panic stars, with customers desperate to get their hands on their own cash.
Employees who agree to stay on with the failed bank will receive 5 times their normal pay for the next 45 days, on top of the annual bonus they have just received.
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Hourly workers will also get double their normal rate, according to Axios.
They say that the annual bonuses were dished out to the workers on Friday just hours before the collapse was in the public domain.
But the outlet added that bonuses for employees that work for Silicon Valley Bank in other countries are scheduled for later this month and haven't been paid as of yet.
NBC added that the bank usually awards its employees with bonuses on the second Friday of March.
The payments were reportedly in process for days prior to the announcement of the company collapsing.
What is unclear, however, is how much cash was actually distributed to employees.
NBC did say that bonuses likely ranged from $14,000 each for associates, up to $140,000 for the big bosses and managing directors, which is based on figures posted on Glassdoor.
It was reported over the weekend that Silicon Valley Bank execs recently sold billions of dollars' worth of stock in parent company SVB Financial Group.
After a massive drop in share price, SVB tried and failed to find alternative funding, including selling the company all together.
This led to the Federal Deposit Insurance Corporation announcing the bank had been shut down and placed in receivership.
Meanwhile in the UK, HSBC has swooped in and saved the UK branch of Silicon Valley Bank, buying it for just a £1.
In a press release, Noel Quinn, HSBC Group CEO, said: "We welcome SVB UK’s customers to HSBC and look forward to helping them grow in the UK and around the world.
"SVB UK customers can continue to bank as usual, safe in the knowledge that their deposits are backed by the strength, safety and security of HSBC.
"We warmly welcome SVB UK colleagues to HSBC, we are excited to start working with them."