You could be happy for most of the workers of the bank too... it is not like the tellers and loans officers were managing the systemic risk of the bank! I am happy for them if they have jobs tomorrow if they were doing their jobs well given that we know that the C-suite and board were screwing stuff up.
Are you telling me what was _my_ point when I asked why would anyone be happy for the workers of a bank that won't exist anymore in any form once the liquidation is sorted out?
What makes you say that SVB will continue operations?
This isn't like when Best Buy went bankrupt, the banking operations will continue, the branches will still run. It will take a long time to absorb SVB's operations into a larger entity, the larger entity may choose to run them as a subsidiary. You are making assumptions about the operations and staff based on no information, if SVB is going to be open for services on Monday as the regulator has promised everybody will have to show up for work.
"Silicon Valley Bank had 17 branches in California and Massachusetts. The main office and all branches of Silicon Valley Bank will reopen on Monday, March 13, 2023. The DINB will maintain Silicon Valley Bank’s normal business hours. Banking activities will resume no later than Monday, March 13, including on-line banking and other services. Silicon Valley Bank’s official checks will continue to clear. Under the Federal Deposit Insurance Act, the FDIC may create a DINB to ensure that customers have continued access to their insured funds."
They are running it under a new name. I understand how this can be confusing but they have to keep everything in place so that the systems will all still work and people can get their money, payroll systems, internal systems and processes all still work. And when a buyer for their operations is found it will keep on running and slowly be incorporated into the acquiring entity because it will in effect be a very large bank merger that will take time and effort.
Thanks. It makes sense and I guess that someone wanting to buy (some of) it may appear more easily now. Let's see. (But if I were a client I don't think I'd be inclined to wait.)
I don't want to beat a dead horse here too much but part of what I hope folks will understand is that any potential buyers also know what I know, they all know that once the liquidity crunch is resolved this is a viable business with good operations that ran profitably for a long time and the regulator would put a continuity plan in place immediately. It is not the case that "someone wanting to buy [..] it may appear more easily now" - all the potential buyers have clear expectations of continued operations. This is a matter of understanding banking as currently practiced, unfortunately there are a lot of folks 'round here that think this is like a retail bankruptcy and are spouting off on that basis instead of deferring to experts.
Depositors might choose to run, but any business that runs their payroll though SVB is going to ask their CFO what to do and that guy is going to say, "We're full guaranteed, how much money to you want to spend to accomplish nothing?"
Regarding the workers of SVB itself, I'm not sure what will happen once the receiver process is finished, but for now workers are being given 1.5x pay by the FDIC for staying on. Hopefully they'll be able to stay on afterwards via an acquiring bank.
Why would anyone be happy for the workers of a bank that won't exist anymore in any form once the liquidation is sorted out?
[Edit: Nevermind, my dumbass didn't understand that those were the workers of the depositors, the clients of the depositors, etc.]