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Many did use multiple banks.
by omginternets 4y ago
Many did use multiple banks.
- mlyle 4y agoYup, and presumably they're a lot less worried. :) If you use multiple banks, you have a higher risk of experiencing a bank failure, but it has less of a consequence on your operations, liquidity, and viability if it should happen.
- closeparen 4y agoEven if you have 10 banks, losing 10% of your working capital is a huge deal, no?
- mlyle 4y agoHere, it's more like losing access to the amount of that is above $250k for some time, and maybe losing 5-40% of that amount forever. So, (0.1 * x - 250000) * 0.4. So if you use IntraFi to place across 10 banks, and you have $10M, maybe you lose $300k. It is a risk... but there's plenty of ways to lose a few percent of your working capital that are out of your control. If you want to further reduce the risk, you could do additional things (e.g. buy some T-bills).
- omginternets 4y agoWell, no. My employer for example was banking at SVB and FRB, in no small part because it was difficult for them do bank elsewhere. And there are many others in the same boat.