3 friends in silicon valley have companies affected. one in finance at roku says things are very bad with close to $50mil with SVB.
this will not be contained to just silicon valley
Discussion
Don’t put more in the bank that you can’t afford to lose!!!
from my conversations so far it seems that there really was a naïveté and no one ever even considered a bank failing and in the roku finance dept there was never any discussions of "above fdic limits" since the were always "using the cash"
depositing and drawing it down constantly
crazy that most of these customers were not using FDIC Money-Sweeper Custodial Accounts for money market and security sweeps
a money market fund holds 100% coverage for its deposits in short term high quality assets like T-bills and short AAA commercial paper. Not risk-free but a LOT less risky than the inherently unstable fractional reserve commercial banks with typically holds less than 10% of its deposits in liquid assets and the rest in long term and/or illiquid assets.
even a treasury direct account is a better option for most corporations with large cash reserves than a commercial bank. it seems like it is amateur hour in silicon valley due to the "strings" that SVB put on its customers.
just like FTX: "want our money, then you have to accept our token and keep your deposits with us"
3a4f05657c048d3e9505bdb9c4fb3658e5e3d4233b0b93c1853e080620589765 bitcoin-22.0-x86_64-linux-gnu-debug.tar.gz
