None of these banks will accept a risky startup placing assets. Why? It’s a bad risk, similar to how bad risk was adopted in the 2008 financial crisis.

Looks like Silicon Valley just disrupted their pants on the global stage.

Edit: Business accounts differ from personal accounts my galaxy-brained friend.

There definitely is someone who doesn’t know what they’re talking about. Do you know who I mean? Just wanted to say that I really appreciate reading another comment on this site made to present the user as intelligent while having no substance beyond “hurrr a bank would totally take your money no questions dude” ;)

Maybe instead of avoiding questions in replies and adding an “Edit” merely to trade insults, you can educate us on why JPM Chase won’t accept cash deposits from startups, and we can learn something. However I’m not holding my breath for insights when startup cash deposits and subprime mortgages are “similar” “bad risks” to you. They have no similarity at all.

Just for the record JPM Chase absolutely does bank startups. https://www.jpmorgan.com/commercial-banking/startups

What does “placing assets” mean here?

If I walk in to Citi and say “I have ten million bucks and will need to withdraw them half a million per month” are they really not going to take my deposit?

I get that they might not want to loan me money, but the SVB problem everyone’s worried about is losing their deposits, or do I have that wrong?

> If I walk in to Citi and say “I have ten million bucks and will need to withdraw them half a million per month” are they really not going to take my deposit?

They will take your deposit, and the banker will even get a nice fat bonus for bringing in big cash deposits (well maybe not a fat one for a meager $10m). Gp doesn’t know what they’re talking about.

> None of these banks will accept a risky startup placing assets

They won’t let you deposit money? Why?

It’s true that a 24 year old start up founder can’t just walk into a BoA branch and deposit the entire series A funds into a business checking account. We just had an object lesson in why not.

That doesn’t mean there’s no way for a start up to have a banking relationship with BoA.

Why not? I am 100% missing something here, but how someone trying to deposit money into the banks may increase risks? Unless there's a reason to believe the money is stolen or otherwise could be reclaimed, which shouldn't be the case if it's coming from a major SV fund?

A deposit creates a liability for the bank. It also creates an asset that can be used to generate a return. It also creates various operational costs.

The way those three things play out the more likely it is for a depositor to suddenly ask for a lot or all his money back the more risky it is for the bank. Both in terms of creating a bank run and just in terms of losing money on the relationship.