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> […] because our CEO used a well-reputed bank? I'm just a Regular Joe, and I have saving and chequing accounts at two banks in case there's an account discrep

> […] because our CEO used a well-reputed bank? I'm just a Regular Joe, and I have saving and chequing accounts at two banks in case there's an account discrepancy / disagreement with one, I still have some funds I can pay bills with until things get sorted out. Stuff happens: * https://en.wikipedia.org/wiki/2012_RBS_Group_computer_system_problems https://en.wikipedia.org/wiki/2012_RBS_Group_computer_system... I also have a couple of hundred dollars worth of cash (e.g, in case of power outages). If you're a multi-million dollar operation, why do you have a single point of failure with regards to finances? (And this has nothing to do with 'deserve': if you play golf during a thunderstorm, would you be surprised if you got zapped?)

rmilk 4y ago
Exactly this point. Every single offering brochure on those business checking accounts notes the FDIC limit. If they’re interest checking accounts, they are money market backed and clearly state no guaranteed return rate or even guarantee of capital. Heck, even my not savvy mother knows to keep her money market retirement accounts in different banks just like you describe. How can we possibly allow the CFO of these companies to get away with not managing finance risk, no matter how small. That was their only job, to manage finance risk. No business continuity insurance? Lines of credit with other banks? Convertible instruments that could be sold on Monday AM to raise cash? So many other ways a CFO can manage cash and risk but did not.
- akrymski 4y ago
  SVB had no Chief Risk Officer for much of 2022 at all, which they failed to disclose. The previous one left in a hurry after selling $4m worth of stock, along with the CEO.
  - throw0101c 4y ago
    We're not talking about SVB: we're talking about the customers of SVB. If you're a not-small company (many dozens of people, which a few million in assets), why would you put all your financial eggs in one basket? Even if they're generally well-run, any institution can be hit with 'bad luck' like ransomware by some zero-day. Just by having (say) one-quarter of your assets at another institution it makes sure you can make payroll and pay your bills for some period of time while things are sorted out at the 'primary'.

rmilk 4y ago

Exactly this point. Every single offering brochure on those business checking accounts notes the FDIC limit. If they’re interest checking accounts, they are money market backed and clearly state no guaranteed return rate or even guarantee of capital. Heck, even my not savvy mother knows to keep her money market retirement accounts in different banks just like you describe. How can we possibly allow the CFO of these companies to get away with not managing finance risk, no matter how small. That was their only job, to manage finance risk. No business continuity insurance? Lines of credit with other banks? Convertible instruments that could be sold on Monday AM to raise cash? So many other ways a CFO can manage cash and risk but did not.

akrymski 4y ago
SVB had no Chief Risk Officer for much of 2022 at all, which they failed to disclose. The previous one left in a hurry after selling $4m worth of stock, along with the CEO.
- throw0101c 4y ago
  We're not talking about SVB: we're talking about the customers of SVB. If you're a not-small company (many dozens of people, which a few million in assets), why would you put all your financial eggs in one basket? Even if they're generally well-run, any institution can be hit with 'bad luck' like ransomware by some zero-day. Just by having (say) one-quarter of your assets at another institution it makes sure you can make payroll and pay your bills for some period of time while things are sorted out at the 'primary'.