Deposit discount

On March 12, according to the Financial Times, some depositors of Silicon Valley banks are trying to sell their deposits at a large discount to raise cash. According to the data of Cherokee Acquisition, the quotation of bank deposits in Silicon Valley that are not covered by insurance is between 55% and 65% on the 10th. According to the report, for some start-ups, it is their last resort to sell their deposits at a discount in order to pay their employees’ wages. A number of VCs said that they had contacted some start-ups and hoped to buy their deposits at a certain discount. Data shows that by the end of 2022, 96% of deposits in Silicon Valley banks were not covered by the Federal Deposit Insurance Corporation (FDIC). (CCTV Finance) Some Silicon Valley bank depositors seek to sell deposits at a discount Analysis based on this information:According to a report by the Financial Times, some depositors of Silicon Valley banks…