Hollywood manufacturing payroll firm Wrapbook is amongst these affected by this week’s collapse of Silicon Valley Financial institution (SVB), which has now been taken over by the Federal Deposit Insurance coverage Company.
SVB, the Sixteenth-largest financial institution within the US, was a monetary hub for know-how corporations and enterprise capital, but additionally had a number of Hollywood corporations as purchasers, notably Roku. The SVB failure is the second-largest in US historical past, trailing solely Washington Mutual, which was ended within the 2008 recession.
The FDIC insures deposits as much as $250,000. However SVB had many purchasers with hundreds of thousands saved in its accounts, leaving open the query of whether or not these funds at the moment are misplaced. Some officers have mentioned the federal authorities might come to their rescue, however the timetable on that’s murky and the motion unsure.
Because of the SVB failure, Wrapbook is scrambling. “This occasion will trigger payroll to be delayed at the moment, March tenth 2023, and affect the processing of uncashed checks,” the corporate posted on its Twitter account. “We’ve despatched e-mail communications to all corporations and their staff – and can proceed to function transparently as this situation is resolved.
“A financial institution failing is an excessive exterior occasion. We apologize, on behalf of all of us at Wrapbook, for any problem this places on you,” it concluded.
Wrapbook mentioned it’s transferring ahead with one other banking companion for payroll processing.