4 ms·

I will not be giving advice or opinions, but please don’t post anecdotes as facts to generate panic. This isn’t what most VC funds are doing.

Danieru 4y ago
It costs what, a transfer, a bit of explaining to the accountants, and a few days lost interest, to protect your company if SVB pulls through. If you risk it and SVB goes into receivership: you might fail to make payroll. You might not have money for the taxman. You might default on liabilities. These are not balanced risks. Any executive which does not pull their company's money to surefire safety is being negligent. Your duty is to your employees, your shareholders, and your suppliers. Not the owners of SVB, or to make the FDIC's job easier.
- redwood 4y ago
  It's musical chairs once the panic sets in... that's why folks are trying to discourage panic. Another bank will likely swoop in, probably no need to panic
  - ptero 4y ago
    Musical chairs for assets currently in SVB or at other banks? If SVB, it is probably too late to stop it, that game has already started and once a bank run starts only a miracle (or a powerful external actor) can stop it. If other banks I do not see a risk of contagion. And should the contagion spread to major banks feds will certainly step in (to save our core banking system, blah blah). My 2c.
  - cj 4y ago
    •probably no need to panic” is accurate. But at least with my company’s money, there’s no room for “probably” when it comes to my ability to pay our employees. Our company will be dead if we can’t make payroll or if we can’t pay our credit card bills. That’s not something any CEO wants to risk just to avoid a bank run. A CEO has a fiduciary responsibility which includes making decisions that are in the best interest of the company. Taking no action at this point is just irresponsible.
  - NavinF 4y ago
    >Another bank will likely swoop in, probably no need to panic This didn't age well.
    - cj 4y ago
      Too early to tell. We’ll know more on Monday.
humaniania 4y ago
Wouldn't they be FDIC insured?
- victorbjorklund 4y ago
  Just up to 250k. And even if you have less than that. Would your business be OK if your money got locked up for weeks/months before you get that reimbursed? How you will pay the company bills etc
chinchilla2020 4y ago
His advice was good though. If you were one of the first to pull out funds you would have escaped with your money. The people who waited and didn't panic lost their money.
Cabal 4y ago
12 hours later, this has not aged well.

Danieru 4y ago

It costs what, a transfer, a bit of explaining to the accountants, and a few days lost interest, to protect your company if SVB pulls through. If you risk it and SVB goes into receivership: you might fail to make payroll. You might not have money for the taxman. You might default on liabilities. These are not balanced risks. Any executive which does not pull their company's money to surefire safety is being negligent. Your duty is to your employees, your shareholders, and your suppliers. Not the owners of SVB, or to make the FDIC's job easier.

redwood 4y ago
It's musical chairs once the panic sets in... that's why folks are trying to discourage panic. Another bank will likely swoop in, probably no need to panic
- ptero 4y ago
  Musical chairs for assets currently in SVB or at other banks? If SVB, it is probably too late to stop it, that game has already started and once a bank run starts only a miracle (or a powerful external actor) can stop it. If other banks I do not see a risk of contagion. And should the contagion spread to major banks feds will certainly step in (to save our core banking system, blah blah). My 2c.
- cj 4y ago
  •probably no need to panic” is accurate. But at least with my company’s money, there’s no room for “probably” when it comes to my ability to pay our employees. Our company will be dead if we can’t make payroll or if we can’t pay our credit card bills. That’s not something any CEO wants to risk just to avoid a bank run. A CEO has a fiduciary responsibility which includes making decisions that are in the best interest of the company. Taking no action at this point is just irresponsible.
- NavinF 4y ago
  >Another bank will likely swoop in, probably no need to panic This didn't age well.
  - cj 4y ago
    Too early to tell. We’ll know more on Monday.

humaniania 4y ago

Wouldn't they be FDIC insured?

victorbjorklund 4y ago
Just up to 250k. And even if you have less than that. Would your business be OK if your money got locked up for weeks/months before you get that reimbursed? How you will pay the company bills etc

chinchilla2020 4y ago

His advice was good though. If you were one of the first to pull out funds you would have escaped with your money. The people who waited and didn't panic lost their money.

Cabal 4y ago

12 hours later, this has not aged well.