4 ms·

What bank do you use? When was the last time you went over their deposit base and asset allocation?

belter 4y ago
> When was the last time you went over their deposit base and asset allocation? A few times but only for a short time and a small percentage of the capital. Was already a full grown adult in 2008, have good memory, and are still licking many old lion financial battle scars...
JumpCrisscross 4y ago
> When was the last time you went over their deposit base and asset allocation Sweep account and credit rating. First is a one-time option. Second, an occasional check.
- hedora 4y ago
  Sweep accounts are fine, but I’m not sure I’d bother with credit ratings. SVB’s was basically as high as possible even for a few hours after the run started and before they closed: https://ir.svb.com/shareholder-and-bondholder-information/credit-ratings/default.aspx https://ir.svb.com/shareholder-and-bondholder-information/cr...
  - JumpCrisscross 4y ago
    > SVB’s was basically as high as possible Borderline investment grade isn’t “high as possible.”
    - hedora 4y ago
      I misread the table. Thanks.
massysett 4y ago
I use an FDIC-insured bank. My deposits are under the limit for insurance. I don’t care about its deposit base or asset allocation because that’s the point of deposit insurance: to make retail depositors feel secure. On the other hand, a CFO with millions in cash is a professional whose job is to manage corporate risk. A competent CFO needs to account for things like bank failures, which do happen.
- peter422 4y ago
  Great now every startup and every business needs to hire a CFO because a bank can't be trusted to store any number higher than $250k? So if my nascent 5-person startup raises 1.2M your suggestion is I need to hire a CFO? That's going to help innovation?
  - baq 4y ago
    There should be a checkbox somewhere in your bank to put your money in multiple CDs in multiple banks transparently for you.
    - nullc 4y ago
      Interactive brokers does this, you can configure it with which of their fleet of banks you already have accounts at so you don't undermine its logic.
    - peter422 4y ago
      ... that's what banks do, they just do it at scale. So you want every person to be their own bank? Why not just let the FDIC do their job, trust in the banking system and save yourself the trouble of worrying about a bank run.
      - baq 4y ago
        If you’re small enough to get fully covered by all means please do, I agree 100%.
  - 4y ago
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> When was the last time you went over their deposit base and asset allocation? A few times but only for a short time and a small percentage of the capital. Was already a full grown adult in 2008, have good memory, and are still licking many old lion financial battle scars...

JumpCrisscross 4y ago

> When was the last time you went over their deposit base and asset allocation Sweep account and credit rating. First is a one-time option. Second, an occasional check.

hedora 4y ago
Sweep accounts are fine, but I’m not sure I’d bother with credit ratings. SVB’s was basically as high as possible even for a few hours after the run started and before they closed: https://ir.svb.com/shareholder-and-bondholder-information/credit-ratings/default.aspx https://ir.svb.com/shareholder-and-bondholder-information/cr...
- JumpCrisscross 4y ago
  > SVB’s was basically as high as possible Borderline investment grade isn’t “high as possible.”
  - hedora 4y ago
    I misread the table. Thanks.

massysett 4y ago

I use an FDIC-insured bank. My deposits are under the limit for insurance. I don’t care about its deposit base or asset allocation because that’s the point of deposit insurance: to make retail depositors feel secure. On the other hand, a CFO with millions in cash is a professional whose job is to manage corporate risk. A competent CFO needs to account for things like bank failures, which do happen.

peter422 4y ago
Great now every startup and every business needs to hire a CFO because a bank can't be trusted to store any number higher than $250k? So if my nascent 5-person startup raises 1.2M your suggestion is I need to hire a CFO? That's going to help innovation?
- baq 4y ago
  There should be a checkbox somewhere in your bank to put your money in multiple CDs in multiple banks transparently for you.
  - nullc 4y ago
    Interactive brokers does this, you can configure it with which of their fleet of banks you already have accounts at so you don't undermine its logic.
  - peter422 4y ago
    ... that's what banks do, they just do it at scale. So you want every person to be their own bank? Why not just let the FDIC do their job, trust in the banking system and save yourself the trouble of worrying about a bank run.
    - baq 4y ago
      If you’re small enough to get fully covered by all means please do, I agree 100%.
- 4y ago

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