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With this place the majority were over 250k. Something like 97% or something. It was a big bank for businesses. Why they were bizarrely keeping such large su
by Mistletoe 4y ago
With this place the majority were over 250k. Something like 97% or something. It was a big bank for businesses. Why they were bizarrely keeping such large sums in one bank account I don’t understand. Roku had almost $500 million there.
- deleted 4y ago[deleted]
- rapsey 4y agoSVB claimed the money is in treasury bills not just cash in the account. Which is a completely sensible place to put it.
- chipgap98 4y agoNo it isn’t. You’re exposing yourself to interest rate risk when doing that
- Kephael 4y agoYeah, you can short eurodollars or maybe something else to hedge risk. At a certain point, you need to be sophisticated enough to manage your funds.
- ehzy 4y agoNot in any meaningful sense if you are only looking to park the money safely and hold to maturity. Buying 3 month T bills won't pay much, but it will pay more than the interest SVB pays on your checking account balance and importantly is backed by the full faith and credit of the us govt.
- tsimionescu 4y agoApparently much of the money was in long-term treasury bills, which is only perfectly sensible if you believe you will not have to access that money for 5-10 years.
- deleted 4y ago[deleted]