On Friday afternoon, CEO Greg Becker sent thousands of shocked Silicon Valley Bank employees a video message.
Becker told about 8,500 employees who had found out that morning that the 40-year-old bank was about to fail while wearing a black jacket with the name and logo of the luxury golf resort Gleneagles. Visit Samsunghubs to learn more about the latest news!
Becker took over as president and CEO of Silicon Valley Bank (SVB) in 2011 after working there for 30 years. He told staff that he was no longer in charge and that his main goal was to keep some of the bank’s values and activities going.
Becker stated, “I have a proposal, and it is an absolutely unreasonable request.” “Can you guys just stick together and try to support each other, try to support our customers, and work together to get a better outcome than where we are now?” is my unfair question.
Friday, regulators shut down the bank because a bank run took $42 billion off its balance sheet, leaving it with a negative balance of almost $1 billion. Also Read – Silicon Valley Bank Swag is latest flash sale on the Internet
Even after almost three days, employees still don’t know what will happen next.
An SVB director who spoke on Monday on the condition of anonymity said that since Becker’s news and Sunday’s announcement that all depositors would be paid back in full, the staff had not heard anything new.
Just as the shock of seeing Silicon Valley Bank fall apart in just 24 hours was starting to fade, the CEO’s last message to employees brought out a new feeling.
Some SVB employees felt betrayed when senior managers sold millions of dollars worth of stock before the bank failed.
Stock worth $3.6 million was sold from a trust that becker owned. A few days earlier, the bank announced $1.8 billion in losses and plans to raise money, which scared investors and caused a rush on the bank.
The FDIC told employees on Saturday that they had 45 days to work for a new company called the Santa Clara Deposit Insurance National Bank, which will protect depositors. As Silicon Valley Bank sells assets, employees will get raises to help with the change.
Another worker said that many of their coworkers, especially the younger ones, were still shocked about what had happened in the past few days.
The employee said, “Everyone is waiting to see if there will be an acquisition or if we should just count down the next 40 or so days.” “Some understood, some understood, and some were angry.” Also Read – CEO of Twitter Elon Musk says he’s open to buying Silicon Valley Bank
But many employees also have to deal with the fact that their bank shares are now worthless.