Wall Street Firm Pounces on SVB Implosion With Offer to Buy Deposit Claims

At least one Wall Street firm is sensing an opportunity in the panic around failed Silicon Valley Bank. Traders from Jefferies are contacting startup founders with money stuck at the bank, offering to buy their deposit claims at a discount, according to several people with direct knowledge of the matter.

The firm is offering at least 70 cents on the dollar for deposit claims, one of the people said, although that price is likely to change. The team is having conversations with startups over the weekend, according to a person familiar with the matter, although it hasn’t yet done a deal. Startups’ interest in selling their deposits could intensify by early next week, if there’s no sign that the FDIC will quickly find a buyer for SVB’s assets.