Hollywood production payroll company Wrapbook are among those affected by this week’s collapse of Silicon Valley Bank (SVB), which has now been taken over by the Federal Deposit Insurance Corporation.
SVB, the 16th largest bank in the US, is a financial hub for technology and venture capital companies, but also has several Hollywood companies as clients, Roku stands out. SVB’s failure was the second largest in US history, behind only Washington Mutual, which ended in the 2008 recession.
The FDIC deposits up to $250,000 are insured. But SVB has many clients with millions stored in its accounts, leaving the question of whether those funds are now gone. Some officials say the federal government may come to their rescue, but the timetable there is murky and action is uncertain.
As a result of SVB’s failure, Wrapbook is scrambling. “This event will cause a payroll delay today, March 10th 2023, and will affect the processing of uncashed checks,” the company posted on its Twitter account. “We have sent email communications to all companies and their workers – and will continue to work transparently while this issue is resolved.
“The bank failure was a severe external event. We apologize, on behalf of all of us at Wrapbook, for any challenge this will cause you,” it concluded.
Wrapbook said it is moving to another banking partner for payroll processing.