I wish I could say this is inconceivable, but it’s not. It is too conceivable.
By Dan Primack
Silicon Valley Bank on Friday paid out annual bonuses to eligible U.S. employees, just hours before the bank was seized by the U.S. government, Axios has learned from multiple sources.
What to know: The bonuses were for work done during 2022, and were previously scheduled to be disbursed on March 10. That date ultimately coincided with the bank's takeover by the Federal Deposit Insurance Corporation.
They went ahead with collecting their bonuses, just as the run on their bank reached the crisis stage.
State of play: An unknown number of SVB employees were emailed by the FDIC on Friday evening, offering them employment with the remnant organization for the next 45 days.
- The employees would be compensated 1.5x times their normal salaries, while hourly workers would receive 2x their normal wages for overtime.
- An FDIC spokesperson tells Axios: "Without commenting on salaries, it’s our standard practice to ask retain [sic] bank employees to assist with an orderly transition as part of our resolution process."
Bankster rules: ‘Heads, you lose, Tails, we win’
When I trade, I don't have an agency problem; I have my neck on the line. When a bank or banker trades, it's not his neck on the line.
~Nassim Nicholas Taleb
Corporate Capitalism American Style, at it’s finest.