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A comment on Silicon Valley Bank paid out bonuses hours before seizure. Parent comment

Re:Silicon Valley Bank paid out bonuses hours before seizure by JumpCrisscross on Saturday March 11, 2023 @05:51PM (#35113618)
> bonuses can't be undone in a matter of days with employees expecting them and even contracts demanding them

If the executives running payroll knew there was material risk of insolvency, this is fraudulent conveyance and could (and should) be flawed back. Those employees’ claims then go into the stack with other creditors.

That said, the FDIC probably signed off on this because what will zero the value of the franchise is every employee who earned a bonus jumping ship over the weekend.

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Re:Silicon Valley Bank paid out bonuses hours before seizure by shadowgovt on Saturday March 11, 2023 @06:09PM (#35113744)
Material risk isn't insolvency. If anything, you run those payouts faster if the FDIC is making heavy breathing noises.
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