A Hollywood payroll firm responsible for sending out paychecks to film and TV production crews has been affected by the sudden collapse of Silicon Valley Bank, resulting in delays in payments.
Wrapbook said the closure of SVB “will cause payroll to be delayed [Friday, March 10], and impact the processing of uncashed checks.” The firm said it is working to resume payroll processing with SVB as well as with other banking partners.
“A bank failing is an extreme external event. We apologize, on behalf of all of us at Wrapbook, for any challenge this puts on you,” the company said in the tweet thread.
As Breitbart News reported, the collapse of Silicon Valley Bank was caused by a massive run on the bank, with customers initiating withdrawals of $42 billion this week.
The bank was placed into Federal Deposit Insurance Corp. receivership on Friday after the California Department of Financial Protection and Innovation (DFPI) determined the bank had been rendered insolvent. SVB was the 16th largest bank by assets, with the U.S. Federal Reserve data showing the bank had $209 billion in assets as of December 31.
Wrapbook isn’t the only entertainment company affected by SVB’s collapse.
Streaming entertainment company Roku said about $487 million of its cash and equivalents is held at SVB, or about 26 percent of the company’s cash.
“The company’s deposits with SVB are largely uninsured. At this time, the company does not know to what extent the company will be able to recover its cash on deposit at SVB,” Roku said in an SEC filing Friday.
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