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Do these companies have a need to have hundreds of millions of dollars of cash readily available? If they had bought treasuries and put it in a Schwab account i
by changoplatanero 3y ago
Do these companies have a need to have hundreds of millions of dollars of cash readily available? If they had bought treasuries and put it in a Schwab account it would be safe even if Schwab went bankrupt right?
- polygamous_bat 3y ago> If they had bought treasuries and put it in a Schwab account it would be safe even if Schwab went bankrupt right? Yes, because Schwab is at best a custodian and cannot dip into customer funds for anything at all.
- dehrmann 3y agoBut they wouldn't be safe from certain bookkeeping errors or internal theft because SIPC insurance also isn't very high.
- cykros 3y agoHundreds of millions might be better kept at Treasurydirect.gov, due to SIPC coverage limits. Though I'll admit ignorance on knowing exactly how insurance over there works, but it'd be a REALLY bad look if the government lost your treasuries and didn't compensate for it.