It doesn’t take every depositor doing a deep dive, but if you hold half a billion dollars in cash at a bank, you bloody well better understand their balance she

It doesn’t take every depositor doing a deep dive, but if you hold half a billion dollars in cash at a bank, you bloody well better understand their balance sheet. I assure you that mainline company and governmental treasurers do this due diligence as a matter of course along with all the other counterparty risk mitigations that are SOP for well run companies. And if you are going to encourage (and sometimes insist) that your portfolio companies work with a bank, understanding concentration risk is the minimum professional standard you should be held to. Every other industry understands what fdic insurance is and is not. Competent CFO and corporate treasurers manage their counterparty risk as part of their job. It’s either immaturity, incompetence or entitlement that makes SV think this isn’t their problem.