Financial Times — World — Banking — Us & Canadian Companies — Banks — Federal Deposit Insurance Corp

Uninsured Silicon Valley Bank depositors seek fire sale of assets

US customers of Silicon Valley Bank which are not covered by a government-backed insurance scheme have been rushing to sell their deposits to pay salaries and other operating expenses after the lender was shuttered by regulators.

March 12, 2023 . 9:37 AM

1 min read

SVB customers with more than $250,000 in accounts face anxious wait to learn if they can recover funds.
Uninsured SVB deposits were being quoted at a price of between 55 and 65 cents on dollar.
Start-up founders have resorted to selling uninsured deposits to pay salaries and other operating expenses.
Fulcrum Capital contacted start-ups offering to pay an unspecified percentage of the total deposits they held at SVB.
Jefferies is one of the financial groups who expressed an interest in buying some of the deposits.
Sheila Bair urged uninsured depositors not to 'precipitously sell'.