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You reckon they would have been holding cash for payroll in SVB if they could have an account directly with the fed instead?
by dools 4y ago
You reckon they would have been holding cash for payroll in SVB if they could have an account directly with the fed instead?
- lend000 4y agoConsider the reasons why most of SVB's clients chose SVB instead of a larger, more traditional bank. The traditional banks work very slowly, are hyper-cautious with/outright deny businesses they don't understand, and if a startup did manage to get an account, its transaction maximums would be extremely limited relative to its growth. Now imagine the government is the custodian, and those problems presumably become 10x worse.
- dools 4y agoI looked up "why would a startup choose svb" and found that the reasons are those which could be fulfilled in a myriad ways: https://au.finance.yahoo.com/news/silicon-valley-bank-served-tech-214849273.html https://au.finance.yahoo.com/news/silicon-valley-bank-served... There was nothing especially "startuppy" about their traditional banking services.