in the wake of SVB's collapse with funds frozen in the failed bank.
The FT reported that startup founders were being cold-emailed with discounted offers on their deposits within 24 hours of SVB's collapse as uncertainty intensified.that at least one Wall Street firm was contacting SVB clients, offering to buy their deposits at 70 cents on the dollar, citing unnamed sources.
A buyer for SVB or a bailout could save customers' deposits, but the window for a resolution is narrowing, with resumption of business Monday regarded as a vital deadline. However, ratings agency Moody's suggested not all uninsured deposits were likely to be returned. It estimated a recovery rate of between 80 and 90 cents in the dollar,If the bank fails to find a resolution by early next week, it seems likely that interest in selling deposits at a discount will intensify.
However, Sheila Bair, who ran the FDIC during the financial crisis in 2008, told the Financial Times that uninsured depositors should hold their nerve:"I think it'd be premature for an uninsured to be selling at a steep discount."Subscribe to push notifications
Imagine if you did this Saturday, and today heard the Fed Govt. would have made you whole?
Modern day “Wonderul Life” Mr Potters in action.
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