Financial Times: Some Silicon Valley Bank depositors are seeking to sell their deposits at a discount

According to ChainCatcher news, the Financial Times reported that some depositors of Silicon Valley Bank are currently trying to sell their deposits at a significant discount to raise cash. According to data from the trading platform Cherokee Acquisition, deposits at Silicon Valley Bank that are not insured are being quoted between 55% and 65% of their value as of the 10th.

The report states that for some startups, selling deposits at a discount is a necessary choice to pay employee salaries. Several venture capital firms have indicated that they have contacted some startups in hopes of purchasing their deposits at some discount. Data shows that as of the end of 2022, 96% of Silicon Valley Bank's deposits were not insured by the Federal Deposit Insurance Corporation (FDIC). (Source link)