ADP could always take it at 90%, figure out the expected return and everybody wins
AWS could take it plus some equity for credits? I imagine the incremental cost of providing the compute is worth the risk
No one forces the economy to operate on dollars - and both traditionally and currently a whole lot of it doesn't.
https://www.federalreserve.gov/aboutthefed/boardmeetings/202...
That will take months at least. In the meantime they'll have this non-liquid piece of paper. I suppose they could try to pay employees with IOUs, but I don't think that many employees would be able to afford to stick around for very long.
Yes, they’ll get an “advance dividend” based on whatever surplus cash is available beyond what is necessary to cover the insured balances, plus a “receivership certificate” accounting for the rest, and, to quote the FDIC press release [0], “As the FDIC sells the assets of Silicon Valley Bank, future dividend payments may be made to uninsured depositors.” [emphasis added].
[0] https://www.fdic.gov/news/press-releases/2023/pr23016.html
It may only be a couple day disruption but what if your employees quit? What if your vendors cut your access and your customers leave?
What if you don't get made whole but get back 80% of your cash? Now your runway is 20% shorter in a climate where investors aren't around.
This could be very bad.
Even if they don’t, in California there is a statutory penalty payable to the employee of $100 to each affected employee for a first, non-willful late payment of wages (second or subsequent violations, or any willful or intentional violations, have a much greater penalty – $200 plus 25% of the wages not paid); that’s not a lot (if you didn’t happen to have a prior payroll hiccup bumping this into the “second or subsequent” category), but its still a hit.
I guess they don't have to worry so much about that what with all the tech layoffs over the last 6 months and with a lot of other statups in the SVB boat, who's going to be hiring?