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It seems like a hack that really should be built into the system. It is insurance only for those in-the-know.
by jnwatson 4y ago
It seems like a hack that really should be built into the system.
It is insurance only for those in-the-know.
- ericpauley 4y agoThe idea is that if you're keeping 250k+ in cash sitting around you should probably be in-the-know. Deposit sweep accounts are incredibly easy to use, Fidelity lets you open one in ~5 minutes. Further, this isn't just some hack, as distributing funds around many banks makes each individual bank less brittle.
- ted_dunning 4y agoThat is the point of having a competent CFO. The letters "CFO" are pronounced "those in the know". Doing a cash sweep is NOT rocket science and there are lots of services that can do it for you. A company can also project forward and ladder treasury instruments to mature at the right times to provide liquidity. T-{notes,bills,bonds} are issued by the US government and thus have at least as much resiliency as the SDIC.