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> But the entities that have more than $250K in the failed bank will likely lose some money If anyone loses money in the SVB downfall, it is entirely the fault
by mike_d 4y ago
> But the entities that have more than $250K in the failed bank will likely lose some money
If anyone loses money in the SVB downfall, it is entirely the fault of the CEO/CFO for poor management.
Depending on your monthly cash flow and your balances, anything over $100k should be kept in CDARS. It is explicitly designed to keep your cash spread out across banks limiting risk of default at a single institution and keeping the balance at each bank below FDIC insurance maximums.
- prennert 4y agoMaybe it is common in the US, and is done routinely when starting a business and business account. But if not I would be surprised if many seedround / series A startups with a couple of million in the bank do this. In the UK I have not heard of an equivalent scheme, but then again I am not dealing with accounts.