3 ms·
VCs have fiduciary responsibility to their Limited Partners. VCs must act in the best financial interest of their LPs. So if a VC knew or suspected that their
by testfoobar 4y ago
VCs have fiduciary responsibility to their Limited Partners.
VCs must act in the best financial interest of their LPs. So if a VC knew or suspected that their investments were at risk due to bank insolvency, they have a fiduciary responsibility to act. Otherwise LPs could sue for breach of fiduciary duty.
- eganist 4y ago> VCs have fiduciary responsibility to their Limited Partners. > VCs must act in the best financial interest of their LPs. So if a VC knew or suspected that their investments were at risk due to bank insolvency, they have a fiduciary responsibility to act. Otherwise LPs could sue for breach of fiduciary duty. No VC is getting sued for not telling their startups to yank cash during a 48 hour bank run.
- twblalock 4y agoWait and see, I bet it will happen.
- FireBeyond 4y agoWhat happens if Thiel is discovered to have had insider information about the impending closure of the bank? In between the very specific timed messages on Wednesday, to get funds out on Thursday, and for Brex to have an application up and running by Friday afternoon to be ready to take loan apps for people, it certainly doesn't seem out of the realm of possibility. Does his fiduciary duty to LPs outweight the insider information? IIRC its actually illegal to encourage or push a bank run.