Re:Urgent: Sign the petition now
by oldgradstudent on Saturday March 11, 2023 @07:35PM
(#35114776)
> Could the CFOs at these companies known they were making risky bets (serious question)
Banks fail. That's part of life.
Every decade or two there is a wave of bank failures. It's a risk that should be managed.
Re:Urgent: Sign the petition now
by subsistence234 on Saturday March 11, 2023 @07:55PM
(#35114968)
apparently SVB offered APY far above what other banks were offering.
> When I put my money in the bank, I don’t consider that an “investment” and neither did the employees.
No, but you should be aware that if you put money into a deposit account, and the bank fails, you are only guaranteed (by the FDIC) to get $250k of that money back. This is usually not a problem, as most individuals don't have that much cash, period, let alone in a single bank account.
But it's a problem for businesses, obviously. And yes:
> Could the CFOs at these companies known they were making risky bets
Absolutely! Putting more than the FDIC-insured max into a deposit account is an obvious risk that any CFO (or corporate finance person in general) will absolutely know about.
I’m the last person to feel sorry for BigTech employees (I am one) making $300K+ a year (I don’t. I’m not complaining) who got laid off and didn’t save during the good times (I have used almost every penny of my after tax signing bonus/RSUs toward “increasing my net worth”). But most of the people working at startups aren’t making nearly that much (?). Why should they suffer harm?
Could the CFOs at these companies known they were making risky bets (serious question)