3 ms·
> 3. If spreading out your 6- or 7-figure assets to multiple institutions is too much of a burden, literally every business bank has special accounts or add-on
by roflyear 4y ago
> 3. If spreading out your 6- or 7-figure assets to multiple institutions is too much of a burden, literally every business bank has special accounts or add-on features that either raise the FDIC default limit of 250k, or supplement it with external insurance. Again, if any startup's financial handlers didn't recommend this: fire them because they entirely failed to do their job.
Contractual obligations often prevent this, btw. Many SVB customers had loans with SVB, which prevented them from using other banks.
- drewbeck 4y agoWow, is this common? From a systems perspective it seems like pure folly, increasing systemic risk and reducing resilience. (from SVB’s perspective I’m sure it seemed great …) it feels like it should be illegal !
- roflyear 4y agoI asked a handful of people with experience in those things and they all said it is very common. I was very surprised as well.