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I feel like you're conflating "a person" with businesses, who have a number of people downstream of their bank accounts. They really aren't very similar to weal

I feel like you're conflating "a person" with businesses, who have a number of people downstream of their bank accounts. They really aren't very similar to wealthy individuals with large bank accounts. Having said that, as I've been reading about this for the first time over the past couple days, I have become a bit less sympathetic to companies with very large deposits at a single bank. It does seem that there are mechanisms, like "insured cash sweep", that good financial officers should have been taking advantage of. But I still have uncertainty about this and want to read more about it. But I think the general point of the other commenter in this thread is a good one: a company with, say $2M to $10M in cash deposits should ideally be able to access banking services easily and with negligible risk. This is not an enormous business size! It's better for society for it to be possible to run businesses like that without having to fear big surprises in the financial system killing you on a random Friday.

wpietri 4y ago
The "person" here is the founding CEO with a $10m check I was being asked to have empathy for. To the extent that we are instead talking about proper businesses, you have a point, but I have a different response. A real business that just keeps $10m in cash sitting around in one spot like some teen's first checking account is grossly lacking in treasury management. > should ideally Sure. Ideally, we should all live in the Big Rock Candy Mountains. [1] But back here in reality, companies have to manage all sorts of risks. If they don't want to hire a professional finance person and don't want to avail themselves of services that solve their problems, then that is a choice they can make. It's just not the taxpayer's job to kiss their boo-boos and make it all better when their gamble doesn't turn out so well. [1] https://en.wikipedia.org/wiki/The_Big_Rock_Candy_Mountains https://en.wikipedia.org/wiki/The_Big_Rock_Candy_Mountains

wpietri 4y ago

The "person" here is the founding CEO with a $10m check I was being asked to have empathy for. To the extent that we are instead talking about proper businesses, you have a point, but I have a different response. A real business that just keeps $10m in cash sitting around in one spot like some teen's first checking account is grossly lacking in treasury management. > should ideally Sure. Ideally, we should all live in the Big Rock Candy Mountains. [1] But back here in reality, companies have to manage all sorts of risks. If they don't want to hire a professional finance person and don't want to avail themselves of services that solve their problems, then that is a choice they can make. It's just not the taxpayer's job to kiss their boo-boos and make it all better when their gamble doesn't turn out so well. [1] https://en.wikipedia.org/wiki/The_Big_Rock_Candy_Mountains https://en.wikipedia.org/wiki/The_Big_Rock_Candy_Mountains